Netflix (NFLX) relies on Internet advertising to attract many of its new subscribers, so in theory, it would benefit if the online ad market tanks: Cheaper search and display ad rates would mean lower subscriber acquisition costs.
Nothing doing yet, CEO Reed Hastings said this evening on the company's Q3 earnings call: "We haven't seen any material softening of those rates, such that would improve our efficiency. We're sort of watching the trends and hopeful of that from our sake as a buyer... but nothing's broken yet."
See Also:
Netflix's Blu-ray Tax: $1 Per Month For HD Movies
Netflix Streaming Gets Much Better With Starz Deal. More Coming?
Sling Takes On Apple TV With SlingCatcher Set-Top Box
Not Recession-Proof, Either: Netflix Knocks Down Guidance
Disclosure: Mathias Döpfner, CEO of Business Insider's parent company, Axel Springer, is a Netflix board member.
