The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported in their fiscal second-quarter earnings.Retailread more
The sexy image that once boosted Victoria's Secret has been haunting L Brands more recently, as women are steering clear of the brand's hot pink, lacy and bejeweled lingerie.Retailread more
President Trump and Apple CEO Tim Cook have had a rocky relationship in recent years, but Trump is now complimenting the executive publicly.Technologyread more
Apple's move into banking could break a key relationship point between customers and wireless carriers such as Verizon and AT&T, according to MoffettNathanson.Marketsread more
Federal Reserve members worried over future growth are highly concerned about the U.S.-China tariff battleThe Fedread more
President Donald Trump signed a memorandum on Wednesday to automatically cancel the student loan debt of disabled veterans. More than 25,000 service members will have their...Personal Financeread more
Reps. Rosa DeLauro, D-Conn., and Lucille Roybal-Allard, D-Calif., say they sent a letter to Homeland Security and the Department of Health and Human Services seeking answers.Health and Scienceread more
Corporate debt recently passed the $1 trillion mark in a continuing sign of global financial displacement.Marketsread more
Netflix has said it doesn't intend to ever run traditional ads. But advertising industry experts aren't so sure that will be the case.
"Well, that's not what their recruiters say," said Tara Walpert Levy, YouTube and Google's VP of Agency and Media Solutions. "They're going to need growth. Eventually, they're going to need more growth."
JP Morgan Chase CMO Kristin Lemkau said consumers would be open to ad-supported options if those options are transparent and consumers understand the value exchange.
"The consumer wants choice and they want something that creates value for them," Lemkau said. "To the extent that you've got this subscription version versus the non-subscription version, consumers will take that tradeoff."
She spoke about "the biggest thing to happen in TV last night," referring to the airing of the latest "Game of Thrones" episode.
"It wouldn't have worked with ads," she said. "That piece of content, that type of storytelling couldn't have happened with ads. The army of the dead are at the wall, and we're still fighting among the houses."
Other streaming services offer both ad-supported and ad-free options. Hulu, for example, sells its ad-supported service for $5.99 per month. It costs $11.99 per month without ads. CBS All Access has similar offerings.
Joshua Lowcock of media agency UM said though there's been a move toward getting rid of ads, it will go back the other way. Lowcock is global brand safety officer and U.S. chief digital and innovation officer at the agency, owned by Interpublic Group.
"We grew up in digital, believing we should inject ads everywhere at every moment we could," Lowcock said. "And that's why you've seen ad blockers and a move to ad-free environments. I think there will become a tipping point where ads come back. Netflix is ad-free now. I can't imagine a world where Netflix will be ad-free forever. If you look at their content costs ... that's where addressable advertising and new ad formats will come in."
Netflix did not respond to a request for comment on the panelists' remarks.
The entrance of new streaming players like Apple and Disney were a point of discussion in Netflix's shareholder letter recently. In it, the company claimed it didn't anticipate "these new entrants will materially affect our growth because the transition from linear to on-demand entertainment is so massive and because of the differing nature of our content offerings." Disney will pull its movies from Netflix this year to stream on its own new service. Netflix has a market cap of $162.6 billion, compared with Disney's $250.4 billion.
Netflix stock fell about 1% earlier this month after reporting its first-quarter earnings. The company posted quarterly revenue that beat estimates but included light guidance for the following quarter. The company ended 2018 with 139 million paid subscribers, up 26 percent for the year. Competitor Hulu ended 2018 with more than 25 million subscribers.