Netflix’s subscriber base has shrunk by 200,000 in the first quarter of this year, and the company expects to lose another two million in the second quarter, we wrote back in April, and it was already clear that the streaming giant began to rethink its advertising policies for advertising. For now, a subscription that is cheaper than the cheapest one now is expected, in return for which Netflix will display ads to users.
About all this Ted SarandosCEO of Netflix, spoke at the Cannes Lions Festival, where, according to a Hollywood Reporter, he not only mentioned that a number of companies were already in talks to introduce advertising, but also discussed the need for another subscription level. to introduce.
We’ve ignored a significant layer of users, those who say, Hey, Netflix is too expensive for me, but I don’t mind ads. There will be a new level of advertising subscription, we will not add ads to the now known Netflix.
The move seems logical, and the cabbage will remain, but the goat is also a typical case: those who get a chill from the ads will still be able to enjoy Netflix content in exchange for the subscription fees currently available, for whom the ever-expanding streaming offer is important. to be able to film / series as cheaply as possible, but don’t mind the commercials, there will be a new option. When this option will become available (and in which regions exactly) is still questionable, as well as whether this move will address the company’s problem of losing competition from its user base as competition intensifies / expands.