⚡ Netflix Profits Surge After Password Sharing Crackdown

📰 Industry News

• Dr Martens is taking e-commerce giant Temu to the High Court, for allegedly infringing its trademark by using words such as ‘Dr Martens‘ and ‘Airwair‘ to make its similar products appear above Dr Martens. (Drapers)

• After firing 28 staff for staging a sit-in protest, Google’s CEO Sundar Pinchai has told staff to keep politics out of the workplace. The staff were protesting about the company’s cloud contract with Israel. (Fortune)

• Coventry Building Society has agreed to a potential takeover of The Co-operative Bank in a deal potentially worth up to £780m. (BBC)

• Asda profits grew 24% in 2023, with a pre-tax profit of £1.1 billion. (Sky News)

🛍️ TikTok Shop Launches Second-Hand Category In U.K

TikTok Shop, the e-commerce branch of the popular short-form video-sharing app, is bringing a second-hand clothing category to the platform. Expanding its U.S. initiative, this move could change how Brits buy and sell high-end used garments and accessories. Here's a closer look:

• Direct Competition: UK customers can now explore pre-owned luxury items from the initial brands participating, which include Sellier, Luxe Collective, Sign of the Times, HardlyEverWornIt, and Break Archive. This will directly compete with other second-hand marketplaces such as Vinted and Depop.

• TikTok Authenticity Assured: Concerns about counterfeit goods are common in online second-hand markets. TikTok Shop addresses this with stringent anti-counterfeit policies, including partnerships with authentication services like Entrupy and Real Authentication, ensuring all items are verified.

• Consumer Fit: The second-hand luxury market is booming, with a valuation of around $49.3 billion globally in 2023. TikTok Shop has sold over $1billion in products, and this venture aligns with the growing consumer shift towards sustainable and pre-loved fashion, which is particularly popular among the platform's user base.

In the UK, there are over 3,800 stores specialising in selling second hand goods, with sales in these stores skyrocketing by over 27% during the pandemic. Today, the UK is the second biggest exporter of used goods worldwide.

TikTok have been smart here, by leveraging their already successful TikTok Shop platform to align to its community of second-hand lovers that use the platform. It looks to be a good fit all round.

🔑 Netflix Profits Surge After Password Sharing Crackdown

Netflix has reported a remarkable surge in its profits for the first quarter of the year, an achievement attributed in part to its recent crackdown on password sharing. This strategic move appears to be paying off, as the streaming giant has seen huge growth in both subscriber numbers and revenue.

Key Highlights from Netflix's Q1 Performance:

1. Substantial Subscriber Growth: Netflix has seen an impressive increase in its subscriber base, adding 9.3 million new customers in the first quarter alone. This growth brings the total number of subscribers close to 270 million worldwide, signalling strong market demand and acceptance of Netflix’s content and platform.

2. Earnings and Revenue Uptick: The company's profits have skyrocketed, with figures for the first quarter jumping to over £1.8 billion. This financial uplift is paralleled by a nearly 15% increase in revenue compared to the same period last year. These numbers reflect not only successful operational adjustments, such as the crackdown on password sharing but also a continuous delivery of popular content like the crime drama "Griselda".

3. Strategic Shift in Reporting: In a significant change to its reporting strategy, Netflix has announced that it will stop releasing its subscriber numbers from next year. This decision has stirred concerns among analysts regarding the future growth trajectory of Netflix’s subscriber base.

Looking Ahead: Netflix's Future Prospects

As Netflix shifts its focus towards maximising profits and revenue, the company continues to innovate by exploring new content avenues such as sports and video games. Despite some analysts expressing apprehension about the sustainability of subscriber growth, Netflix's robust Q1 performance offers a promising outlook. We can conclude, for the short-term at least, that the crackdown on password sharing has been a success for the streaming platform.

⛔ Ad Blockers Are Costing Brands Billions

In the UK, the adoption of ad blockers has created a significant challenge for brands and publishers reliant on digital advertising. With 31% of UK adults using ad blocking software, understanding this trend is crucial for navigating the digital economy effectively.

Here's a concise breakdown of the current state of ad blockers in the UK and their impact:

• Adoption Trends: As of 2023, there has been a noticeable shift in device preference for ad blockers. While 70% of users install ad blockers on their PCs or laptops, an increasing number, 44%, are now using them on mobile devices. This trend highlights the ongoing preference in consumer behaviour towards mobile-first content consumption.

• Demographic Insight: Contrary to past trends, there is no specific age group leading the charge in ad blocker usage in the UK. This widespread adoption across different demographics suggests that frustration with online ads cuts across age and lifestyle.

• Impact on Publishers: UK publishers face a considerable threat from ad blockers, with potential ad revenue losses mounting. The economic impact is significant, with global predictions estimating a loss of $54 billion (£43 billion) in ad revenues due to ad blocking in 2024 alone. A staggering figure.

• Consumer Motivations: The primary drivers for using ad blockers include the desire for faster loading times, reduction in data usage, and avoidance of intrusive or irrelevant advertisements. These factors contribute to a growing preference for ad-free or minimally invasive ad experiences online.

The Outposts Opinion: For brands, the rise of ad blockers signals a need for a shift in how they engage with consumers. Intrusive and irrelevant ads are no longer tolerable, pushing brands to rethink their advertising strategies to sustainably engage with the UK's digitally savvy consumers.

Consumers, on the other hand, benefit from an improved online experience but must also navigate the complexities of content access, as some publishers restrict content to users with active ad blockers. This dynamic creates a push-pull between access to free content and the desire for a non-intrusive digital environment, while undermining many ad-based business models that publishers rely on.

👟 Finally A Pringles Holder For Your Crocs - Why Brand Collabs Work

Crocs and Pringles have just launched a wild collaboration.

Crocs, the brand known for its comfortable footwear, has teamed up with Pringles, the beloved crisp brand, to launch a limited-edition line of footwear that promises to keep both your feet and your snack cravings satisfied. Here’s why this playful partnership is more than just a gimmick and what it signifies for the marketing world.

1. Creating Buzz with Novelty

The Pringles x Crocs collaboration builds upon the power of novelty to capture the attention of consumers worldwide. This collection features unique designs such as the Classic Crush Boot with a custom holster for a Pringles can, it’s eye-catching and instantly iconic. By integrating iconic elements from both brands, such as the Pringles can and Crocs’ comfortable design, this partnership masters the art of creating a viral sensation that spreads rapidly across social media platforms.

2. Engaging Communities

Both Crocs and Pringles possess enthusiastic brand communities that thrive on innovation and fun. By combining forces, they effectively double their outreach and engage with each other's audiences. This collaboration isn't just about selling products (but if you want a Pringles Croc, then go for it); it's about creating a shared experience that resonates with fans of both brands. As stated by Matias Infante, Vice President of Global Brand Partnerships & Energy for Crocs, this partnership is designed to "ignite our communities and excite our fans," highlighting the strategic focus on community engagement.

3. Building Brand Identity

Collaborations like these allow brands to refresh their image and maintain relevance in a competitive market. For Crocs, working with Pringles introduces a playful element to their line. Conversely, Pringles gains an innovative platform to expand its presence beyond the snack aisle, reminding consumers of its versatility and cultural icon status.

The Outposts Opinion: The Pringles x Crocs collaboration works, and is a great example of brand collabs done correctly, combining distinctive brand identities to forge a memorable consumer experience. The move illustrates how brands can use collaboration as a tool for mutual enhancement and increased market reach, brand awareness and product innovation.

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