Netflix's upfront retreat isn't deterring TV networks

Netflix’s last-minute decision to pivot to a virtual upfront presentation is being viewed as a “rookie move” by ad leaders. The streamer sent a note to clients last night informing them that it will no longer be hosting an in-person event as planned at New York’s Paris Theater. Instead, its first upfront dog-and-pony show will be virtual, with no celebrity talent in attendance. The switch comes amid the Writers’ Guild of America strike, with one source with knowledge of the situation saying the decision to go virtual was a result of concerns from New York City’s police department for pedestrian safety due to planned protests associated with the strike. But it doesn’t appear other network groups with plans to make upfront pitches to advertisers next week have the same concerns. Upfronts and NewFronts blog Tracking the latest TV and digital ad pitches Read more here Active conversations are occurring between the WGA and networks, said an NBCUniversal spokesperson. “These are peaceful protests. Do we see them being problematic at our upfront? No. Do we anticipate they will put guests in harm's way? No. Will we have safety precautions? Yes, of course,” they said. The spokesperson said the strike has impacted what celebrity talent is able to participate in NBCU’s presentation, but that talent will still be present at the event. A source with knowledge of Disney’s presentation said, “Our priority for next week is to hold a meaningful event for our advertising partners and, as would be the case in any year, ensure the safety of our talent, staff and our guests.” Warner Bros. Discovery and Fox have confirmed that they will have in-person presentations next week as planned. “There will be 1,000 people protesting in front of Radio City Music Hall on Monday morning,” said one industry source. “Mark my words. Bad experience.” ‘Rookie moves’ “This is Netflix’s first jaunt in the space. Their location wasn’t ideal—a tourist location that accommodated an audience of a couple hundred,” said a source with knowledge of competitor presentations, noting the legacy TV networks are accustomed to safely hosting thousands of guests at their events. “They’re just rookie moves left and right,” said one media buyer of Netflix’s decision, noting some of the stumbles the streamer has made in taking its ad-supported product to market over the past year. Netflix declined Ad Age’s requests for comment. Still, the move to a virtual presentation on May 17 isn’t expected to impact advertisers’ willingness to buy Netflix inventory, the buyer said. “People who are going to work with them are going to work with them.” A second buyer said the move to virtual may have been because “they were worried about being embarrassed more than anything” as Netflix has been emblematic of many of the conditions that led to the WGA’s strike, including fair pay and job stability as TV shifts to streaming. Netflix’s path to launching its ad-supported subscription tier last November was marred by what advertisers perceived as a rushed job—void of capabilities advertisers have grown accustomed to in digital marketing and at industry-high pricing. And despite Netflix’s attempts to mitigate expectations, it has nonetheless been the subject of criticism since launch for the pace of its user growth. The streamer’s upfront was anticipated as a sort of coming out party for its sales team, and a signal of willingness to play ball in industry traditions. On advertisers’ wish list for Netflix’s upfront was the desire to connect with its sales team, led by VP of Global Ad Sales Peter Naylor and President of Worldwide Advertising Jeremi Gorman, whom agency buyers felt have been kept behind closed doors. “Advertising is a relational business and you will get way more money by bringing your people out in a personable, intelligent, fairly transparent way,” a media buyer previously told Ad Age of Netflix’s challenges in its early sales efforts. Check out the latest Ad Age events and award programs

Netflix's upfront retreat isn't deterring TV networks

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