Netflix will definitely place ads on its service.
Streaming companies always maintain a marketing platform, instead of increasing the value of their subscriptions and managing their growth.
But Netflix has been a rough year. The company’s share price fell following reports of subscriber loss.
Last week, the company confirmed that it had laid off more employees.
And now it’s relying on advertising to help fund low-priced subscription levels to win people back.
Netflix CEO Ted Sarandos confirmed during an interview in Cannes that a new plan will be unveiled shortly.
“We took most consumers off the table. These are the people who say, ‘Hey, Netflix is ​​too expensive for me and I don’t care about advertising,'” he said at the Cannes Lions Festival. ..
“We’re adding a layer of ads for people who say, ‘Look, I want a low price and I’m seeing an ad.’
He stressed that when the ads come, they only appear on that particular level, and regular subscribers can’t see them “on Netflix, as you know today.”
Netflix announced last week that it would lay off 300 employees, or about 4% of its total staff, in the second round of staff reductions.
“Unfortunately, today we are laying off about 300 employees. A Netflix spokeswoman said: ‘We continue to invest heavily in our business, but costs are rising as revenue growth slows. So we made these adjustments.'”
“We are very grateful for everything they have done for Netflix and we are working to support them during this difficult transition.
The layoffs primarily affected several US teams, but also affected employees in the Singapore, Tokyo, Mumbai, Seoul, Argentina and Europe offices.
According to the company, it lost 200,000 subscribers in the first quarter, less than expected to add 2.5 million subscribers. The suspension of the service in Russia after the invasion of Ukraine also killed 700,000 Netflix members.
The subscriber losses may be due to the end of the pandemic-driven streaming boom, as the family canceled a record number of video subscriptions earlier this year.
Source: Metro
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