By Stuart Condie
SYDNEY–Nine Entertainment Co. Holdings Ltd. doesn’t anticipate introducing a cut-price tier to its Stan streaming platform even if Netflix Inc. Introduces a local ad-funded service, Chief Executive Mike Sneesby said.
Mr. Sneesby said Nine wouldn’t the feel pressure to follow suit if Netflix responded to its first quarterly drop in subscribers in more than a decade by selling ads. Australia’s entertainment consumers are relatively affluent in global terms and not particularly price-driven, he said at the Macquarie Australia Conference on Wednesday.
Nine has other options to drive advertising revenue by using assets, including its eponymous free-to-air TV network and newspapers, Mr. Sneesby said.
Nine could monetize data from its 7.8 million Stan subscribers by incorporating their data into sales across Nine’s existing ad-funded platforms, he said. Stan’s subscriber agreements already allow for this, he added.
Another option would be to distribute some premium Stan content on an ad-funded tier, such as broadcast TV or ad-supported streaming service Nine Now, and allow cross-promotion to drive subscribers into the full-paying service.
“We’ve got two levers in the market that allow us to do what it is that some international streamers are doing but in a much more eloquent way,” Mr. Sneesby said.
Write to Stuart Condie at [email protected]
Credit: www.marketwatch.com /