Netflix Is Becoming What It Replaced: Live TV

Before we get into this evening’s briefing, check out Kalley and Cory’s late-breaking scoop today about Meta Platforms’ latest efforts to boost its artificial intelligence efforts. We reported that the company is holding advanced talks with Nat Friedman and Daniel Gross, two prominent investors, about joining Meta. Meta is also discussing partially buying out their investment firm, NFDG, as part of the talks.

Netflix continues to find fresh ways to mimic the old-school cable TV business it has already conquered. After introducing an advertising-supported tier and wading into live sports, on Wednesday it announced a new deal with French broadcaster TF1 to distribute its TV channels on its service in France.

While this is just a deal with one broadcaster in France, the move has potentially broader implications. Netflix is intent on growing its advertising business—hence the company’s investments in broadcasting live programming such as Christmas Day NFL games. Its aim is to have ads eventually go from a small part of its business to a meaningful contributor—at least 10%—to its overall revenue, which totaled $39 billion last year. To underline the point, Netflix co-CEO Greg Peters made the announcement with TF1 in Cannes during the ad industry’s biggest festival of the year.