Ads will appear on Netflix much earlier than we originally expected. As reported The newspaper “New York Timesthe streaming platform plans to introduce the cheapest plan, but with ads. before the end of the year. The news has already been brought to the attention of the company’s employees.
If this happens, it will be a major change in the company’s strategy. When Netflix CEO Reed Hastings announced that the service would be moving to an ad-supported subscription option, he said it would take them a year to consider the proposal. And he even predicted that a global launch could take up to two years.
However, times have changed. The platform’s new intent is to include an ad-supported plan. in the last quarter of 2022. So between October and December of the following year, we could find major news about Netflix as the company tries to right course after the recent horrific loss of users.
The news that the ad plan is coming this year makes it clear that the movie and series streaming service doesn’t want to lose ground with its competitors either. And the company knows that advancing its plans around this opportunity comes with risks. “Yes, [el cambio] it’s fast and ambitious and will require some compromises. Every major streaming company except Apple has or has announced an ad-supported service. For good reason, people want lower priced options,” reads a note sent to employees.
In addition, Netflix believes that the earlier introduction of an ad-supported subscription option will not cheapen your image. In the same internal statement, the firm uses Hulu and HBO Max as examples: “They support strong brands by offering ad-supported services,” the post said.
The ad will appear on Netflix in the last quarter of 2022.
The arrival of ads on Netflix will mark a major shift in the company’s business strategy. Actually, another one of several that have appeared recently. As a reminder, the streaming platform recently confirmed that it lost 200,000 subscribers in the first quarter of this year; and forecasts for the second quarter are even more catastrophic, as another 2 million users are expected to drop.
The news was a strong blow not only for the company itself, but for the entertainment industry as a whole. Going forward, Netflix plans to adopt tighter financial discipline and therefore reduce the amount of original content it releases per year in order to focus on quality. This does not imply a reduction in investments in series and own films, but focuses money in those productions that offer great returns (despite criticism).
But the advent of a cheap, ad-supported subscription plan is not going to happen on its own. Netflix is also planning promote measures to prevent users from continuing to share their account passwords. While internal mail sent to employees doesn’t list too much, the company’s intent would be to charge higher fees to subscribers who find themselves sharing their access.
Netflix sees shared accounts as a major blow to its business model. According to the company, if it could turn all people using the same account into individual followers, can add another 100 million customers.
Source: Hiper Textual
