Advertising Coming Soon to Netflix

For years, Netflix has opposed the idea of ​​a more affordable, ad-supported offering. But the company also often changes its mind. And while its subscriber numbers are down, the streaming giant has finally changed its stance on advertising.

“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription”said Reed Hastings, the company’s CEO, in April. “But as much as I’m a fan of that, I’m a bigger fan of consumer choice, and allowing consumers who want a lower price and who are ad-tolerant to get what they want makes a lot of sense. . »

In the first quarter, SVOD saw its number of subscribers drop for the first time in more than a decade. And offering an affordable offer with advertising would be a way for it to attract new users who do not want to pay for the standard subscription.

In addition, it seems that Netflix wants to launch this offer partially financed by advertising this year. According to an article published by the New York Times, the company recently sent a note to its employees to let them know that the goal is to have this low-cost offer available in the third quarter of 2022.

And Netflix could also start cracking down on password sharing during the same period. As a reminder, he intends to make this practice profitable. Thus, in return for a supplement, users could continue to share their accounts with other people who are not in the same household.

An affordable offer to attract more subscribers to Netflix

In the first quarter of 2022, Netflix lost 200,000 users. And the company is preparing to lose 2 million more in the coming months. It is therefore urgent for it to find new ways to boost its growth.

According to the NYT, in the note addressed to employees, Netflix would also have recalled that currently, advertising has become commonplace in streaming. Moreover, the company would have accelerated the creation of this new offer.

“Every major streaming company except Apple has or has announced an ad-supported service”indicates the note. “For good reason, people want cheaper options. »

As a reminder, while Roku (a streaming service available in the USA) has been offering an offer partially financed by advertising for years, Disney+ will also be rolling out a similar offer. And a cheaper subscription, but with ads, is already available on HBO Max.

It is important to remember that in some countries, Netflix already offers low-cost subscriptions. However, these do not include advertisements, but users can only watch the films and series in the catalog on mobile screens.


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