Netflix — which just boosted Q1 guidance — could post record-low subscriber acquisition costs this quarter, CFO Barry McCarthy said this morning at Jefferies’ annual Internet stock conference.
Why’s that? In part, he said, because financial advertisers are cutting back on their Web spending. Which means there’s more inventory available. Which makes it cheaper for Netflix to buy Web ads, he said.
“It is true that online sources of acquisition are less expensive than they used to be because there’s less demand, primarily amongst financial service advertisers, for online content, so we’re getting a slightly bigger bang for our buck,” McCarthy said. “…You’re going to see a record low [subscriber acquisition cost] this quarter that I think is really going to shock some people.”
See Also: Netflix Boosts Guidance, CFO Looks Ahead
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