All you need to know about Netflix advertising
One of the biggest streaming platforms, Netflix, noted a drastic drop in sales, the biggest one in years. The company had to take immediate action in order to compensate for the losses. Recently, Netflix announced that they will introduce adverts on their website. “We’re trying to find a balanced approach here,” said Netflix’s COO Greg Peters. But how will this approach look in reality, and what does it mean to us, the users?
Why is Netflix adding ads?
The company’s decision to add advertisements was strongly associated with the recent drop in users. With competition amongst streaming platforms multiplying (HBO Max, Hulu, Disney+, and Paramount, to name a few), viewers have more options to discover which service best suits their specific needs. Netflix lost subscribers for the first time in 10 years and therefore felt they had to take action, and thus their new commercial plan was born. The on-demand streaming service hopes that by adding a cheaper tier with adverts and giving the user the choice of a more affordable or expensive ad-free option, Netflix will generate more revenue.
How will Netflix advertising work?
As for now, Netflix declares it won’t show adverts for children’s programs or during Netflix original movies. You can, however, expect them before and during the platform’s original T.V. shows. We know that the existing tiers will stay the same, with the cheaper option being added to bolster your options. So if you’re an existing subscriber, you won’t have to worry about new prices to your Netflix plan.
When will Netflix have ads?
Initially, Netflix wanted to introduce ads somewhere in early 2023. This may come as a surprise to you but, as we can read in the Guardian’s article regarding Netflix advertising, the streaming platform changed its plans and will now launch an ad-supported plan on November 1st. The Guardian also reports that the first countries that will be affected by the change are Australia, Canada, the USA, France, and Germany.
Will Netflix with ads be cheaper?
New Netflix subscriptions are expected to cost from $7-$9. This will be less than the most popular plan Netflix offers, currently priced at $15. So if watching advertisements here and there doesn't bother you, maybe look to the new subscription plan as an alternative, saving you money in the process.
Is Netflix advertising a sneak peek of bigger changes?
Netflix is not the first, and most likely not the last, streaming platform that introduces advertisements. Disney+, is also going to implement the same option soon. HBO Max is already offering ad-supported plans and so is Hulu. It was just a matter of time until Netflix decided to take the same path. With such competition, the streaming giant found new ways to source income. Of course, this enables users to choose which plan is the right one for them. One question that still remains is whether ads will put Netflix's original content into the next production gear. We can’t wait to find out!