Recently, Netflix’s subscriber base has plummeted and this popular and ad-free streaming service is now considering offering a cheaper ad subscription.
Netflix has already lost quite a few customers this year, for the first time since 2011. For example, this popular streaming video service lost 600,000 paying subscribers after it increased prices in the US and Canada. And because of the war in Ukraine, Netflix had to block more than 700,000 Russians from access. To counter this loss, Netflix is ​​now considering offering a cheaper subscription in which it shows advertising while streaming. Incidentally, Videoland also offers subscription forms with advertisements and Disney + will also come with advertising this year. Netflix also wants to prevent account sharing. By the way, check here if you want to know what’s on Netflix in July.
Advertising or higher subscription costs
Netflix has previously indicated that it may start showing advertisements. Now it’s actually talking to Google, NBC Universal and other companies about ads on Netflix. This allows it to offer a cheaper subscription, which in turn should ensure (more) new customers. The downside for Netflix is ​​that current customers can choose to take this cheaper subscription. Incidentally, no amounts were mentioned yet how much this cheaper subscription should cost. Netflix director Sarandos said the advertising will be “more integrated and less disruptive” than traditional TV advertising: “I want our product to be better than television.”
Google, NBCUniversal and/or own advertising
Google and NBCUniversal already have experience with video advertising. For example, the latter has technology through a subsidiary to embed advertising in videos and Google uses its own technology for advertising clips integrated into YouTube videos. Perhaps Netflix may also offer advertising itself by purchasing the technology. To be continued…
