Netflix is betting that a cheaper version of its streaming service with commercials will help save its hide as the company continues to deal with an unprecedented exodus of subscribers. But the Biden recession is throwing another hurdle in the company’s way: a significant slowdown in ad spending that is already hurting other streamers.
Ad spending is cooling across the board as companies curtail marketing in the face of record inflation and overall consumer pessimism. With families forced to pinch pennies thanks to soaring gas and food prices, corporations are rethinking expensive ad buys on TV and online.
The timing couldn’t be worse, or more just, for Netflix, whose executives enthusiastically campaigned for and poured million of dollars into Joe Biden’s 2020 presidential