Netflix, Inc. (NFLX): Online Video Viewing Surge Does Not Mean that Traditional TV is Doomed

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In the recent past, many people start migrating from traditional television to online television. Companies like Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) are reaping the benefits of being in this market for quite some time now. Tremor Video CEO, Bill Day talked on Bloomberg about the surge in online video viewing and traditional television.

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Day mentioned that he had the opportunity to spend more than 27 years working in the Internet and digital space. He started with a company named Prodigy in 80’s, post which he played a major part in a company named about.com. He also said that he witnessed the starting of targeted and search-based advertising. He feels that video advertising is trending currently.

Video advertising is currently done on traditional television and online television. He feels that video advertising is trending predominantly in the online platform. He mentioned that online platform includes desktops, personal computers, mobile devices, tablets and connected televisions. He added that the future online platform might include touch television and linear televisionas well.

Video advertising in traditional TV has stagnated and is growing significantly in online TV, which benefits companies like Netflix, Inc. (NASDAQ:NFLX). Day thinks that tradition TV advertising is still very large and a lot of things are happening in that platform as well.

“[…] What you see going on is consumption shifting and so marketers tend to watch consumption as people spend more time on their devices as opposed to the TV. Even if the TV is on in the living room I often think of television today as like the music of the living room. It’s on. Are you paying attention? But, if you can advertise online in coordination with what you do in television, we found and we believe, that’s how you get the best experience to recreate the sort of situation that used to exist 20 years ago […],” Day said.

He mentioned that Tremor Video looks specifically at people engagement in advertisements. They try to find the optimum time and shows to play the advertisements in TV.

Netflix, Inc. (NASDAQ:NFLX) has been a leader in online television for quite some now. They even crossed 50 million subscribers globally at the end of the second quarter.

Among the top shareholders for Netflix, Inc. (NASDAQ:NFLX) is Icahn Capital LP, led by Carl Icahn. They hold around 1.8 million shares of the company.

Disclosure: None

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