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netflix offering more than $300 million for billboard company: sources - outdoor advertising
(Reuters)-Netflix Inc (NFLX. O)
Offering more than $0. 3 billion to buy a company that owns billboards in Los Angeles, including on the famous Sunset Boulevard in West Hollywood, the move may help it maintain a high profile in the world's entertainment capital, according to people familiar with the matter, thus saving money.
If successful, the purchase of Regency Outdoor advertising will be fast-
The Silicon Valley streaming video company, which has studios in Hollywood, is now one of the world's largest film and television producers.
According to industry analysts, Netflix's motivation is not clear, but over time it can save money on deals, this year, as marketing spending for its original films and films increased to $2 billion.
Netflix uses Regent's outdoor billboards to promote its "strange things" and "Crown" series of TV series.
Barry Lowenthal, president of the New York Media Kitchen, said billboard ads on Sunset Boulevard in Los Angeles could cost $140,000 a month
Media buyers.
"It's a smart move for Netflix because it's a very important viewing market," Lowenthal said . ".
"Los Angeles is important to the industry.
Amazon technology. com Inc (AMZN. O)
Hulu and Facebook (FB. O)
Traditional media companies such as Walt Disney (DIS. N)
Are competing with Netflix for subscribers.
Netflix is just one of the bidders in Los Angeles-
The source said this week that it was based outside Regent and was not sure if its offer would be successful because the matter was confidential, so asked not to be identified.
Netflix declined to comment.
In a slightly lower market, its stock has barely changed.
Lijing outdoor did not respond to requests for comment.
The world's leading streaming company still uses physical advertising spaces such as billboards to promote its programs.
Compared to other forms of traditional advertising, billboards have their own features, such as advertisements that are easy to skip in newspapers or on TV.
Regency Outdoor owned by the Drake brothers and the Brian Kennedy brothers, with billboards on Sunset Boulevard, part of Sunset Boulevard, Los Angeles, known for its live music and nightclubs, filled with eye-catching billboards that promote upcoming TV shows and movies.
It also has billboards near Los Angeles International Airport, major highways, and University of California, Los Angeles (UCLA)
According to the company's website, the campus is near the Los Angeles Angel baseball stadium.
Earlier this year, Netflix said in a letter to shareholders that its marketing spending grew "slightly faster" than revenue.
According to a recent report by MoffettNathanson, due to greater marketing spending, Netflix's per-user spending will jump from $13 per user to around $ 25% per user, above
The company reports that it has 117.
By the end of 2017, streaming users worldwide had reached 6 million, surpassing any direct competitor.
Michael Nathanson, analyst at MoffettNathanson, wrote in the research report: "As the original content market becomes more crowded, Netflix is increasing its sales to promote more and more Netflix original content.
Netflix's first acquisition was last year's acquisition of comic publisher Millarworld, which was not disclosed.
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