Netflix on track to hit $11bn in revenue this year
Netflix added more subscribers than expected during Q3 and is now on track to make more than $11bn in revenue this year, according to its latest earning report.
The streaming giant added 5.3 million subscribers during the quarter, a 49% rise year on year, meaning it beat its own target to add 4.4 million.
Netflix now has 109 million subscribers globally, however this means many more viewers in reality given eMarketer estimates roughly 2.5 viewers for each paid subscription.
In a statement, the brand said: “We continued to benefit from a strong appetite for our original series and films, as well as the adoption of internet entertainment across the world.”
Video ad spend overtakes banner ads
Video is the fastest growing digital ad format, with advertisers now spending more on video than banner ads for the first time, according to the latest Digital Adspend report from the Internet Advertising Bureau UK and PwC.
Advertisers spent £699m on video ads during the first half of 2017 – a 46% year-on-year increase. Spend on banner ads, meanwhile, rose by just under 2% to £685m.
The rise means video now accounts for 35% of all display advertising spend.
The IAB’s CEO Jon Mew says: “The time people spend watching online video has grown tremendously over the last few years, so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content.”
Sports Direct owner to sell Newcastle United
Sports Direct owner Mike Ashley has put Newcastle United up for sale, with hopes to have it off his hands by Christmas.
Ashley has reportedly been open to offers for the Premier League club but has now made his intentions official after instructing St James’ Park to issue a public statement clarifying his intentions.
He is understood to be looking for £380m for the club he bought 10 years ago and has stated he would accept staggered payments but made it clear he wants out rather than a partnership with new investors.
Anthony Joshua teams up with Lynx
World Heavyweight Champion Anthony Joshua has joined forces with Lynx to launch a limited edition fragrance and give fans the opportunity to win tickets to his next fight.
As part of the launch, the Unilever-owned brand is running a two-week campaign encouraging people to take part in a mobile game to track down the limited edition product – five of which are hand signed by Joshua and will grant the winner access to his next fight.
To encourage fans to participate Lynx has worked with TMW Unlimited and LandMrk to set up a microsite with geo-locked content. The campaign is also being supported by Joshua on his social channels.
Dilraj Athwal, Lynx brand manager at Unilever UK, says: “Anthony Joshua has long been a fan of Lynx so we thought it would be a brilliant idea to give his fans the opportunity to see him in action with this innovative campaign.”
IBM eyes blockchain opportunity
IBM has launched a blockchain network designed to reduce the time it takes banks to settle cross-border payments, as well as lowering the cost for businesses and consumers.
The technology will allow banks to clear and settle global payment transactions on a single network almost instantly.
“With the guidance of some of the world’s leading financial institutions, IBM is working to explore new ways to make payment networks more efficient and transparent so that banking can happen in real-time, even in the most remote parts of the world,” said senior vice-president of IBM Industry Platforms Bridget van Kralingen.
Blockchain technology presents huge opportunities for brands, from ad delivery verification to the safe and transparent storage of data, so it’s something marketers should be looking to get to grips with.
Monday, 16 October
CoppaFeel! shows first full-frontal boobs on daytime TV
Breast cancer health and education charity CoppaFeel! has been given permission to show full-frontal breasts on daytime TV for the first time ever to encourage women to check themselves regularly for unusual changes.
The #TrustYourTouch campaign, created in partnership with Fold7, looks to highlight the importance of using your touch to ensure early detection of lumps or bumps.
ClearCast cleared the ad for daytime TV and cinemas, but the only condition is that the ad isn’t shown around children’s programming. There are otherwise no timing restrictions on the ad due to the importance of its message. It will run both 60 and 40-second ads.
A spokesman told Marketing Week the ads are booked via pro bono media relationships – ITV’s a confirmed partner – and will go live from today (16 October).
Research by CoppaFeel! found that the vast majority of young women do not check their boobs regularly. The main barrier was uncertainty, with six in 10 saying they lacked the confidence to know how to check. The majority of 18 to 29-year-old women believe there is a specific method to check their breasts, thinking it is much more complicated than it really is.
UberEats on course for reaching $3bn in sales
While Uber might have had a bad year filled with crises, Uber’s sister company UberEats seems to be doing just fine. The food delivery service made up nearly a tenth of the company’s global gross bookings in the second quarter, according to the FT.
This implies the division is on track to exceed $3bn in gross sales this year. The service only launched two years ago as a standalone app.
During the second quarter of this year, UberEats accounted for eight to 10% of global gross bookings, which implies $700m-$870m of gross turnover for the unit. Uber’s total gross bookings were $8.7bn for the period.
By comparison, competitor GrubHub, which is valued at $4.1bn, reported $880m of gross food sales during the second quarter.
Facebook looks to tackle online bullying with digital safety ambassadors
The US social media giant is offering every UK secondary school the chance to train up “digital safety ambassadors” to stop online bullying.
It will look to tackle the problem by partnering with youth charities Childnet International and The Diana Award, and offer every UK secondary school dedicated digital safety ambassadors: young people trained to provide peer-to-peer support and lead online safety initiatives in the classroom.
Tens of thousands of pupils in 4,500 secondary schools could be trained as ‘digital leaders’ or ‘anti-bullying ambassadors’, and will be provided with face-to-face training, dedicated online resources and forums.
New research from Researchbods shows 13 to 17-year-olds are more likely to confide in a peer (72%) than a parent (60%) or teacher (34%) should they experience online bullying.
And with estimates that between 6% and 25% of children have experienced online bullying, Facebook’s commitment will look to scale the charities’ existing work in schools to improve child safety and well-being through peer-to-peer support.
Government launches investigation into Airbnb’s effect on communities
Airbnb has long struggled with local authorities in different markets, and has even been banned or scaled back in cities such as Berlin and Barcelona. The British Government is now also looking to take action.
It is launching a push to understand how peer-to-peer accommodation websites such as Airbnb affect local communities, which could pave the way for regulation of such “sharing economy” websites.
The Open Data Institute) an independent body set up by World Wide Web founder Sir Tim Berners-Lee, has been handed a £6m grant to pursue projects that include studying the impact of property-sharing sites.
It opens up the possibility that Airbnb, which has been accused of exacerbating housing shortages and disturbing neighbourhoods, could face new rules designed to limit its impact.
UK retailers face losing out to European rivals
British retailers will be outstripped by their European rivals next year as disposable incomes are squeezed by slowing wage growth and a return of inflation, analysts have warned.
Despite robust retail sales growth this year credit rating agency Moody’s has warned it expects high street bellwethers Next and Marks Spencer to suffer from “anaemic growth or even a contraction of earnings” next year.
In its study of European retailers, seen by The Daily Telegraph, only the UK retail names are listed as losers for next year. Debenhams, House of Fraser, BQ owner Kingfisher, Marks Spencer, New Look and Next are all predicted to have negative earnings.
“The looming prospect of interest rate rises will mean UK consumers continue to search for value and it will also curb any meaningful growth in discretionary spending,” said Moody’s.