Netflix’s Ad-Supported Tier Grows 34%; US Spends $14.2 Billion on Amazon Prime Day; Southeast Asian Retailers to Increase Spend on Contextual Real-Time Pricing

by Aimee Newell Tarín on 22nd Jul 2024 in News

On today’s news digest: Netflix’s Ad-Supported Tier Grows 34%; US Spends $14.2 Billion on Amazon Prime Day; Southeast Asian Retailers to Increase Spend on Contextual Real-Time Pricing

Netflix’s Q2 earnings are out, surpassing estimates again. The streaming giant’s ad-supported memberships grew by 34% during the quarter compared to the previous year. Its ad-supported service accounted for 45% of all signups. Its paid memberships rose 16.5% year-over-year globally, adding over 8 million paying customers in the quarter to reach a total number of 278 million. Meanwhile, Netflix confirmed that its VP of advertising, Peter Naylor, would be leaving the company. Following the introduction of Netflix’s ad-streaming tier in 2022, Naylor is the second major ad executive to announce a departure.

Amazon will also be basking in its success following Amazon Prime Day last week, with the event achieving a record spend. Sales of both days combined drove a staggering consumer spend of USD $14.2bn (£11bn) in the US. Electronics drove a huge number of purchases, with their sales increasing 61% compared to the June average. Sales of small kitchen appliances specifically rose by 76%. The categories of footwear, health and beauty saw the strongest growth among non-Amazon retailers. In the UK, a total of £1.3bn was spent over both days.

Looking at the retail landscape of the APAC region, data from Shopify reveals that 68% of Southeast Asian retailers are planning to increase investment in social commerce over the next year. Shopify also finds social media to be the biggest driver of brand and product discovery in the region, with more than eight in ten consumers discovering new products this way. Examining incentives to buy, Shopify’s data found that price was the top factor for shoppers in Southeast Asia. Consequently, retailers in the region plan to increase spend predominantly on contextual real-time pricing.