Ads On Netflix Are Coming Sooner Than We Thought, And It’s All Down To Disney

By | 03/09/2022

After the declining subscription numbers at Netflix, the streaming service appear appropriate steps. 1 option: Netflix with ads.

For the commencement fourth dimension since 2011, Netflix had to report a declining number of streaming subscriptions in spring 2022. The service is still the most popular streaming provider worldwide. In the outset quarter of this year, however, a reject of a skilful 200,000 subscribers was recorded. Netflix responded to this by announcing a whole bundle of measures. Also under discussion was some other subscription choice for Netflix that includes advertising. In that location is not but news about this – according to the New York Times, the offer could fifty-fifty be bachelor surprisingly soon.

Netflix announces measures to counteract customer attrition

In order to reduce costs in the futurity and pick up more subscribers, Netflix wants to select the program more carefully, among other things. According to Netflix CEO Reed Hastings, this ways fewer and more high-quality productions, shorter series and shorter episodes. However, it is not yet known exactly what the program design should look like. In any instance, the list of new products currently reads merely as extensively every bit usual. In addition, Netflix wants to crevice downwardly on illegal account sharing, every bit TECHBOOK also reported.

After the streaming service had stuck to its ad-gratuitous strategy for years, the loss of customers has now apparently led to a rethink. The slump in the stock market may accept played its office. After initially only rumors made the rounds and important Netflix heads expressed their first thoughts, there is now solid news about a Netflix subscription with advertising.

Advertisement confirmed for Netflix

At this twelvemonth’s Cannes Lions, a central promotional event, Netflix co-CEO Ted Sarandos confirmed an advertisement-supported subscription.

Nosotros left a large segment of customers at the table, namely the people who say, “Netflix is ​​too expensive for me and I don’t listen ad.”

Ted Sarandos

His CEO colleague Hastings was also very positive, as such a subscription gives consumers significantly more pick and flexibility. It’s also no underground that Netflix, with its more than 220 million accounts, is extremely attractive every bit an advertisement platform. Even if only a fraction were to switch to a Netflix subscription with ads, the effect would be huge. In addition, one could win back customers who have migrated to the competition because of the price increase.

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Also interesting: Experts accept been expecting ad on Netflix since 2019

Netflix with advertising volition probably come in 2022

At present that the “if” has been confirmed, the question of “when” arises. According to a written report by the renowned “New York Times”, Netflix is ​​already planning a subscription with advertisement very far. The aim is therefore to publish it before the finish of this year. A release would exist conceivable at the first of wintertime, when the streaming numbers naturally increase considering interest is increasing again. Perchance Netflix will likewise link the commencement of the subscription with advertising to a big release similar “The Witcher” season 3?

In any case, the preparations are already in full swing. As reported past The Wall Street Journal, Netflix is ​​already in talks with several video advertisement providers. Google and NBCUniversal, among others, are said to be there. Both companies already have a lot of experience with the relevant technology and are aiming for an exclusive partnership with the streaming giant.

But in that location are also rumors that Netflix wants to buy the US service Roku in club to benefit from its advertising structure. With this or independently of it, Netflix could find its own solution for the integration of advertizing. At that place is no official statement on the negotiations yet. Sarandos simply said: “We are currently speaking to anybody (…). Nosotros desire a fairly easy marketplace entry – which in turn we can build on and iterate on. What we practise kickoff volition not be representative of what the product will ultimately exist. I desire our product to be better than television set.” So perhaps Netflix wants to work with advertizing partners on a temporary basis and then develop their own solution.

Disney+ is likewise planning advertising on the streaming platform

Netflix’s primary competitor in the streaming marketplace is Disney+. Although the provider is still a few million subscriptions behind Netflix, at that place are now most 140 one thousand thousand subscribers. With the program to introduce a subscription with advertising, Netflix is ​​actually primarily following Disney+. The provider announced appropriate steps dorsum in March.

The contest betwixt the two providers could now as well explain the rush shown past Netflix. It has long been confirmed that Disney + will come with ad in 2022. Disney+ is talking well-nigh an boilerplate of iv minutes of advertising per hour. In Germany, RTL+ and Joyn too offer a comparable model.