Will New Streaming Options Slow Netflix?; Rugby Broadcast Carries Glitchy Virtual Ads

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Paying Attention

Some financial analysts are skeptical that Netflix will be able to maintain growth when it faces stronger competition in the streaming category. “The more Netflix grows, the more its costs grow and the more money it burns. I’m not sure how it’s ever going to turn that around,” NYU finance professor Aswath Damodaran tells The New York Times. But a straightforward analysis of Netflix’s costs vs. subscription revenue doesn’t account for the eventuality of advertising revenue. Netflix is focused on winning share of consumer attention right now, to the point where it considers “sleep” a competitor, CEO Reed Hastings told investors last year. “Someday there will have to be competition for wallet share; we’re not naïve about that,” he said. “But it seems very far off from everything we’ve seen.” More.

Virtual Reality

The Rugby World Cup live stream was plagued by glitchy virtual digital signage that distorted and obscured players on the field. The on-field overlays were pulled after 11 minutes – with sponsors Canon and AIG getting some unwanted attention from fans – Sporting News reports. The incident is a good case study as sports broadcasters and streaming services figure out how to implement virtual marketing and product placement technology. A sport like rugby must balance the enticement of additional revenue against the loyalty of fans on which it heavily depends. More. And AdExchanger has more about how streaming services are using virtual marketing content integration.