If you’re one of the millions of people who ditch Netflix to save money, the company wants you back.
To do this, it plans to launch a low cost plan to recover costs by displaying ads.
Unfortunately, Netflix executives have confirmed that this economic level does not have access to everything.
In his earnings announcement, CEO Ted Salandus said that if Netflix’s ad layer were to launch today, it would cover “the bulk” of content.
He went on to explain that Netflix is ​​currently in discussions with the studio about providing additional content to cheaper places, but “certainly not to all”.
Of course, the move makes sense. Netflix may want to separate some of the content from the cheaper tier to convince viewers to upgrade and pay more.
It’s unclear what restrictions Netflix will impose in 2023 when this new level drops. However, the company certainly leans towards streaming generally.
“In the future, streaming will work everywhere,” said CEO Reed Hastings.
“Everyone is coming. Streaming is booming as linear TV is really going to end in the next 5-10 years.”
Streaming companies always maintain a marketing platform and instead rely on increasing the value of their subscriptions to drive growth.
But Netflix was a tough year. The company’s stock price fell after the loss of subscribers was reported.
So it makes sense to look for advertising to help fund low-cost subscriptions to win people back.
“Netflix needs to show ads related to the shows and movies it shows,” said Kai Hennigs, a video advertising expert.
“It’s also important that Netflix establish and maintain ad quality and aesthetic standards, enriching the user experience rather than compromising it.”
According to the company, it lost 200,000 subscribers in the first quarter and missed the forecast of 2.5 million additional subscribers. The service interruption in Russia following the invasion of Ukraine also cost 700,000 Netflix members.
Subscriber losses may be due to the end of the streaming boom caused by the pandemic. This is because households canceled a record number of video subscriptions earlier this year.
Source: Metro
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