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Commentary: The Business

Here’s Why Jewelry Retailers Should Care about Disney+ and Netflix’s Upcoming Ad-Supported Subscriptions

Lower prices should attract more young subscribers.

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MEDIA ADVERTISING IS about to get a whole lot more interesting as Disney+ and Netflix are introducing ad-supported subscription options in late 2022. As two of the most dominant streaming services, the question is how many traditional cable ad dollars will move over to Disney+ and Netflix, along with other OTT (over-the-top) services?

Users typically subscribe to multiple streaming services, which can add up to a nice chunk of change. So, it shouldn’t come as a surprise that 57 percent of people, surveyed by Hub Entertainment Research, said they could tolerate some ads. Disney+ and Netflix already have the highest retention rates among streaming services, so there is some consistency in terms of viewership; that’s important for ad dollar consideration. In addition, offering a lower-priced option may not only increase retention, but will most likely lead to new subscribers.

And we all know subscriber growth is a KPI for streaming services. Those new subscribers will also, more than likely, consist of 35-year-olds and younger (which would boost bridal age subscribers). Compared to traditional media, Disney+ and Netflix would rely much less on ad revenue. In fact, it may lead to a revolution in how ad networks function. One obvious example, which is already true for video ads that run on social channels, is ad length. If you’ve ever sat through a commercial break with six-plus sets of ads with an average of four minutes per break, you’ll understand the pain. So, shorter ad breaks would be a welcome addition. Since ads would likely be non-skippable, limiting ad break times could actually benefit ad recall and overall effectiveness, since 60-90 seconds isn’t long enough for viewers to get up and make a snack.

Reinventing ad delivery could also be revolutionary. Since users maintain an account, the platforms would have access to different types of data, like what type of shows you watch. This could lead to a more personalized and relevant ad experience, especially if the user could select what types of ads they wish to see.

Take Amazon Prime, for example. Since Prime is connected to a user’s Amazon account, how simple would it be to show advertising based on products they use? With a click of a button, that ad could turn into an e-commerce conversion and add the product to the user’s cart.

Changing advertising so that it allows more personable levels of engagement and/or introducing new products based on interests could usher in a whole new world of relevant and, dare I say, desired advertising.

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Fruchtman Marketing is a full-service agency that specializes in the jewelry industry and works with many of the country’s finest jewelry retailers, manufacturers, designers and trade groups. The company has presented seminars at the most prominent trade shows, including JCK Las Vegas, IJO and The Centurion Jewelry Show, and contributes to top industry publications. Visit the jewelry marketing experts at fruchtman.com

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Celebrate Your Retirement with Wilkerson

For nearly three decades, Suzanne and Tom Arnold ran a successful business at Facets Fine Jewelry in Arlington, Va. But the time came when the Arnolds wanted to do some of the things you put off while you’ve got a business to run. “We decided it was time to retire,” says Suzanne, who claims the couple knew how to open a store, how to run a store but “didn’t know how to close a store.” So, they hired Wilkerson to do it for them. When she called, Suzanne says Wilkerson offered every option for the sale she could have hoped for. Better still, “the sale exceeded our financial goals like crazy,” she says. And customers came, not only to take advantage of the going-out-of-business buys and mark-downs, but to wish a bon voyage to the beloved proprietors of a neighborhood institution. “People were celebrating our retirement, and that was so special,” says says.

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