Netflix Inc. upended the global entertainment industry about a dozen years ago when it launched a streaming video service that rendered network television programming schedules and movie screening times obsolete.
Netflix is now aiming for the pay TV industry’s final reel: its estimated $153 billion pool of global advertising revenue. The company and some analysts see its new, lower-cost ad-supported service, which was detailed in a rosy quarterly report on Tuesday, as a way to boost revenue as customers cut back on spending due to the economic downturn. As the size of the TV audience shrinks, it becomes less appealing to advertisers and a prime target for Netflix to disrupt.
