Connect with us

Business

Goodbye binge-watching: Netflix, others, bringing back ad breaks in coming weeks – Global News

Published

 on


Canadian Netflix users will see a new membership option starting Tuesday that costs less but comes with a catch: commercial breaks inserted into their favourite shows.

After years of uninterrupted binge-watches, the world’s largest streaming service is making way for a word from its sponsors. And as inflation continues to pinch consumers, the proposal of a cheaper Netflix plan may sound enticing to some.

Genius Dog 336 x 280 - Animated

Netflix isn’t alone in believing that commercial television is back in a big way.

Read more:

More Canadians bidding goodbye to streaming subscriptions as cost of living climbs: study 

Several free ad-supported streaming services will launch in Canada over the coming weeks, all of them built on a business model that taps into the country’s multi-billion advertising industry to finance and acquire programming.

Analysts say together the platforms could reshape how we watch and pay for television. More viewers are complaining that streaming costs have soared near the level of their old cable bills, which has pressured each service to reconsider its business model.

“Consumers are faced with more choice, more platforms and are making more deliberate decisions as to which streaming services they keep and which ones to cancel,” said Justin Krieger, senior technology and media analyst at consultancy firm RSM Canada.


Click to play video: 'Disastrous week for Netflix creates concern for future of streaming'

4:43
Disastrous week for Netflix creates concern for future of streaming


Of the newcomers, Pluto TV debuts on Dec. 1 with more than 100 channels of free TV series, movies and sports that stream “live” online on a platform that mimics the experience of channel surfing, complete with the commercials.

Around the same time, CBC will introduce a revamped free streaming news channel that will be available on CBC Gem and multiple other streaming platforms. A flagship program hosted by Andrew Chang of “The National” will be the main attraction, with advertisements interspersed throughout the day.

South of the border, Disney Plus rolls out an ad-supported option later this year with some industry observers predicting it will apply the same model in Canada soon after. The ad tier will be introduced at the price of Disney’s existing commercial-free service. Subscribers who want to eliminate the ads will have to pay a premium.

Each service has its own reasons for getting into the ad business.

Read more:

Netflix recovers from subscriber slump, projects gains from advertising option

For Netflix and Disney, one of the main drivers is growing revenues as programming costs soar and competitors lure away subscribers.

Meanwhile, the free streaming services use ad revenues to fund a slate of original and licensed programming, which puts incredible pressure on Netflix to maintain its leading position with attractive new films and shows.

Netflix’s pitch

Earlier this year, after repeatedly swearing off the possibility of ever getting into advertising, Netflix changed its tune by announcing it would launch an ad tier for subscribers in key international markets.

In Canada, the “basic with ads” plan costs $5.99 per month _ less than the plans without ads, which start at $9.99 and peak at $20.99 a month.

As a trade-off for the savings, Netflix says subscribers will be presented with an average of four to five minutes of ads per hour played before and during their TV shows and films.

Video quality on the Netflix ad plan tops out at 720p, leaving full high-definition streaming at 1080p and 4K for premium subscribers. Viewers also won’t be able to download titles on their devices and not everything in the service’s library will be available.

Those restrictions will sour the appeal to many Netflix devotees, suggested Carmi Levy, a technology analyst based in London, Ont.

He said Canadians were sold the idea of a commercial-free Netflix a decade ago which led other entrants in the market to mimic their approach with similar models.

That’s different than the United States where Peacock, Paramount Plus and HBO Max all offer less expensive ad tiers as a subscription option, while Crackle and Amazon’s Freevee are among the major players in free, ad-supported platforms.

“Canadians don’t have that legacy of experience and as a result may be more resistant to the way Netflix is introducing that service,” he said.

“It’ll take time for Netflix and others to educate Canadians on the advantages of paying less for a streaming service and getting ads served up in return.”

Do Canadians want ads?

Kaan Yigit, a technology analyst at Solutions Research Group, said a survey conducted by his firm earlier this year found U.S. viewers have already adopted ad-supported subscription options.

About 40 per cent of HBO Max subscribers signed up for its lower-priced ad tier, he said, while an average of 58 per cent of subscribers used the cheaper versions of Paramount Plus and Peacock.

He estimates a modest 20 per cent of Canadian Netflix subscribers will join the ad tier over the next 12 to 18 months.

However, Netflix’s initial sign-up numbers won’t be the best indicator of long-term success for the ad model, suggested Levy.

Subscribers who joined for a deal could be turned off if the ad breaks become as long as they are on network TV stations, which typically air 20 minutes of commercials per hour.

“The devil is always in the details whenever a streaming provider introduces an ad-based tier,” Levy said.

“What matters most is how intrusive that presentation of ads is to the overall viewing experience. And if it is intrusive in the way that consumers have long complained about traditional broadcast television ads, then this could very well be a non-starter for Netflix.”

The ad agencies

Until those intricacies play out, advertising agencies say their clients are salivating over the prospects of new placement options in the Canadian market.

“What we’re seeing is a lot of initial excitement and questions around Netflix, in particular,” said Marissa Cristiano, an account director at Cossette who says she’s “exploring” ad buys on the service with some clients.

“They’ve done a really good job of creating … the type of content that brands really do want to ally with.”

Cherie Hill, senior vice president of media at marketing firm Society, Etc., said she anticipates Netflix ads will be angled toward “budget-conscious” shoppers, with a strong focus on consumer staples, household items and car companies.

She doesn’t anticipate much blowback from viewers, mainly because Netflix is making it an opt-in proposition.

“If you’re choosing to have the commercials, it’s not going to leave a negative experience,” she said.

“They’re providing an option and they’re managing expectations.”

Adblock test (Why?)



Source link

Continue Reading

Business

Canada's jobs market ekes out another gain in November as wages rise – Yahoo Canada Finance

Published

 on


Workers inspect lumber at West Fraser Pacific Inland Resources sawmill in Smithers, British Columbia, Canada February 4, 2020. REUTERS/Jesse Winter

Statistics Canada reported the latest jobs report for November on Friday. REUTERS/Jesse Winter

Canada’s labour market added 10,000 jobs in November, building slightly on its massive 108,000 gain from the month prior, Statistics Canada reported on Friday.

The gain was driven by an increase in full-time positions. Employment rose in sectors such as finance, real estate and manufacturing but fell in construction and wholesale trade.

The unemployment rate ticked lower to 5.1 per cent as labour force participation edged down.

Genius Dog 336 x 280 - Animated

Average hourly wage growth across all industries remained unchanged in November at 5.6 per cent, while wages for permanent employees tapered gains to 5.4 per cent on an annualized basis.

It’s the sixth month in a row that wages have risen by more than five per cent and a key measure the Bank of Canada is watching as it tries to head off a wage-price spiral.

“A host of wage metrics suggest that Canadian wage growth is either stabilizing or decelerating,” Royce Mendes, managing director at head of macro strategy at Desjardins, said in a note.

“As a result of the only modest gain in headline employment and the absence of any signs of accelerating wage growth, we continue to expect the Bank of Canada to hike rates just 25bps next week.”

However, other economists are still betting on a half-point hike from the central bank.

“Over the past 6 months, the Canadian labour market has largely stood still, with average gains of just over 4K a month. However, given still strong wage growth, the composition of job gains in November (mainly private sector and full-time), and the low unemployment rate, this report supports our view that the Bank of Canada will increase rates by 50 bps next week, before pausing in 2023,” Karyne Charbonneau, the executive director of economics at CIBC Capital Markets, said in a note.

The small gain in employment comes as economic growth in the third quarter was stronger than expected.

GDP grew 2.9 per cent on an annualized basis in the three-month period. While it marked a slowdown compared to the previous quarter, the headline number was significantly stronger than the Bank of Canada’s forecast in its latest Monetary Policy Report, where it predicted growth to stall through the end of this year and into 2023.

Michelle Zadikian is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @m_zadikian.

Download the Yahoo Finance app, available for Apple and Android.

Adblock test (Why?)



Source link

Continue Reading

Business

Kelowna unemployment rate rises for third consecutive month – Kelowna News – Castanet.net

Published

 on


Central Okanagan’s unemployment rate jumped in November, marking the third consecutive month it has increased.

Statistics Canada on Friday reported Kelowna’s metropolitan area had a jobless rate of 4.9% last month, which was up from 4.3% in October and 4.1% in September. The region’s unemployment rate hit a nearly three-year low of 3.9% in August but is now on the way back up.

Genius Dog 336 x 280 - Animated

Kelowna’s labour force, which is all members of the population who are able to work, dropped by 1,200 people in November, but the number of those actually working fell by 1,900.

It was a different story in the Thompson Okanagan region as a whole, however, as the unemployment rate dipped to 4.5% from 4.9% last month.

The national jobless mark fell to 5.1% in November from 5.2% in October, and the country gained 10,000 jobs over the month’s 30 days. Canada added 108,000 jobs in October.

“The main overriding feature of today’s report was that you were continuing to gain jobs in Canada,” TD director of economics James Orlando said Friday. “If you add up just the number of jobs gained (in) November and October, it’s pretty substantial.”

Employment rose in several industries in November, including finance, insurance, real estate, rental and leasing, manufacturing and in information, culture and recreation, while it fell in construction as well as wholesale and retail trade.

Statistics Canada also noted in its report that the employment rate among core-aged women aged 25 to 54 hit 81.6% in November, a record high in comparable data going back to 1976.

Canada’s labour market has remained remarkably strong despite signs of an economic slowdown. The unemployment rate fell to a record-low of 4.9% in the summer and has edged up only slightly since then.

“The economy is clearly still doing very well,” Orlando said. “When you look at the labour market, you have not seen a slowdown.”

— with files from The Canadian Press

Adblock test (Why?)



Source link

Continue Reading

Business

Oil Analysts Are More Divided Than Ever – OilPrice.com

Published

 on



Oil Analysts Are More Divided Than Ever | OilPrice.com

Genius Dog 336 x 280 - Animated


Trending Discussions

Premium Content

Oil

1. Oil Analysts Diverge Ahead of OPEC Meeting

– OPEC+ will meet this Sunday to discuss its production targets for January 2023, amidst a widening discrepancy between oil market watchers as to what we should be expecting next year.

– As things stand currently, it is only the US Department of Energy’s EIA that sees OPEC+ pumping more oil in H1 2023, others indicate the oil group should either keep targets as they are or cut further.

– With outright prices bouncing back from the lowest levels seen this year and even WTI swinging back above $80 per barrel, the current consensus is that OPEC+ will roll over its targets.

– Confirming that forecasts have become inherently political, the IEA’s global oil demand growth for 2023 stands at a mere 1.7 million b/d whilst OPEC expects 2.55 million b/d.

2. Ukraine War to Shrink Russian Upstream Investment

– After Russian oil companies invested $45 billion into upstream projects across the country last year, this year is poised to see the lowest investment activity in years as companies postpone FIDs.

– Greenfield investments have tumbled 40% year-on-year to $8 billion, and even that is mostly coming from previous commitments such as gas production going into Power of Siberia-1 or Vostok Oil.

– Russia’s two largest energy companies, the oil giant Rosneft and the gas giant Gazprom, have seen marginal declines in capital spending this year, coming in at $12.9 billion…

1. Oil Analysts Diverge Ahead of OPEC Meeting

Oil

– OPEC+ will meet this Sunday to discuss its production targets for January 2023, amidst a widening discrepancy between oil market watchers as to what we should be expecting next year.

– As things stand currently, it is only the US Department of Energy’s EIA that sees OPEC+ pumping more oil in H1 2023, others indicate the oil group should either keep targets as they are or cut further.

– With outright prices bouncing back from the lowest levels seen this year and even WTI swinging back above $80 per barrel, the current consensus is that OPEC+ will roll over its targets.

– Confirming that forecasts have become inherently political, the IEA’s global oil demand growth for 2023 stands at a mere 1.7 million b/d whilst OPEC expects 2.55 million b/d.

2. Ukraine War to Shrink Russian Upstream Investment

Ukraine

– After Russian oil companies invested $45 billion into upstream projects across the country last year, this year is poised to see the lowest investment activity in years as companies postpone FIDs.

– Greenfield investments have tumbled 40% year-on-year to $8 billion, and even that is mostly coming from previous commitments such as gas production going into Power of Siberia-1 or Vostok Oil.

– Russia’s two largest energy companies, the oil giant Rosneft and the gas giant Gazprom, have seen marginal declines in capital spending this year, coming in at $12.9 billion and $10.4 billion, respectively.

– At the same time, future LNG projects such as Novatek’s Arctic LNG-2 might be delayed for five to six years longer than previously assumed due to a lack of liquefaction technologies.

3. Europe Confronts First Cold Spell

Europe

– Following an unseasonably warm autumn, Europe is now bracing for colder-than-average temperatures in December as a double-blocking pattern in the Arctic will bring weeks of chill.

– Scandinavia, Northern, and Western Europe will be the most impacted regions, marking the first real test of European gas inventories this winter, with stocks still around 94% full.

– Power prices in Scandinavian countries were the first to react, with the Nordic daily rate surging 8% in just one day to almost €375 per MWh, the highest since September.

– European spot gas prices have seen some strengthening earlier this week, although they remain on par with month-ago readings, trending around €140 per MWh.

4. Lack of Dual-Use Units Limits Gas Switching

Gas

– As the coming Arctic wave is pushing natural gas prices in Europe up again, the continent’s industry at large has hit the limits of gas-to-oil switching that could allow the generation of power from diesel or fuel oil.

According to the IEA, gas-to-oil switching in Europe might rise to 450,000 b/d in Q4 2022 and Q1 2023, double of what it used to be a year ago when gas prices were four times cheaper.

– The switching capacity of the European industry is assessed at a mere 2-3% of installed capacity or around 2 GW, with most of it located in Italy, Germany, and Spain.

– Fuel oil used to be a huge source of power generation in the early 2000s with some 1 million b/d of installed capacity, but now those volumes have shrunk sixfold to 150,000 b/d.

5. China’s Decarbonization Is Around the Corner

China

According to Rystad Energy, China is developing more renewable energy capacity than any other country in the world to fulfill its pledge of becoming carbon-neutral by 2060.

– China’s power generation is still dominated by coal, accounting for some 58% of all electricity and totaling 1,115 GW in capacity, but non-emitting energies have been making huge inroads.

– Current developments suggest China will ramp up its solar PV and wind capacity to almost 2,000 GW by 2030, tripling it over the course of the upcoming seven years as the LCOE of a solar plant dropped below $50 per MWh.

– China’s share in the manufacturing of solar panels stands around 85%, implying the sourcing of wafers and polysilicon will be domestic, buoying relevant industries as well.

6. Despite Headwinds, Saudi Arabia Is the Real Winner of 2022

Saudi Arabia

– Saudi Arabia is expected to post a budget surplus of $25 billion this year, the first in more than a decade, fuelled by a robust 8% increase in the Middle Eastern kingdom’s real GDP.

– Boosted by higher production from Saudi Aramco and elevated oil prices for most of this year, the ramp-up in fiscal spending now will push the budget breakeven lower next year, to $76 per barrel.

– Despite the bountiful windfall, Riyadh has many unforeseen issues it must settle, such as the country’s sudden bank liquidity issue as the interbank offered rate (Saibor) soared to 6% recently.

– This has prompted the Saudi central bank to intervene, seeking to cool down the aggressive loan expansion amidst the country’s rapid economic growth.

7. Copper Strength Is Back

Copper

– Amidst widespread Chinese protests and China’s purchasing managers index (PMI) coming in at the lowest reading since March 2022, copper prices continue their spectacular surge.

– The three-month LME copper contract moved to 8,220 per metric ton this week, setting it on track to soar 10% in November, the first monthly gain in eight months and the biggest since April 2021.

– Most of the positive momentum for copper has been coming from shifting expectations in Chinese growth, with the market seeing the protests as paving the way for further Covid easing.

– China is the largest consumer of copper globally and still relies on imports for 25% of its needs, prompting new calls from Chinese miners to launch new rounds of ore prospecting in the country.

<!–

Trending Discussions

–>



Related posts

Adblock test (Why?)



Source link

Continue Reading

Trending