Netflix: the ad is coming, it's official!

Netflix: the ad is coming, it’s official!

News hardware Netflix: the ad is coming, it’s official!

The idea was already in the head of the SVOD giant: Netflix has formalized the arrival of a cheaper package, including advertisements. It was Ted Sarandos, co-CEO of the platform, who spoke about it.

Summary

  • Netflix: a subscription for “people ready to watch ads”
  • Netflix: ads, but not only?

Netflix: a subscription for “people ready to watch ads”

If it has never really closed the door to the idea of ​​integrating a subscription model into its service, Netflix has decided to take the plunge today. It is Ted Sarandos, co-CEO of the SVOD platform, who indicates this during a conference at the international festival of creativity taking place in Cannes and whose remarks are reported The Hollywood Reporter :

We are adding a category with ads, we are not adding ads to the Netflix you know today. We’re adding a plan with ads for people who think ‘hey, I want a lower price and I’ll watch the ads’.

Ted Sarandos justifies this decision because he explains that Netflix has “forgotten a whole category of people who are not bothered by ads but who consider Netflix to be too expensive“.

Netflix: ads, but not only?

In addition to this omission, it is worth pointing out that Netflix must lead in this first half of 2022. With this new formula “less expensive“, the SVOD platform is probably seeking to recover subscribers who have abandoned the service. Last April, it recorded his first net loss of members since his debut. A historic event that saw it plunge into the stock market in stride. If we can consider that this initiative will probably bear fruit (even if we wait to see), another functionality is also likely to make subscribers: that of paid account sharing, already on trial in some countries. from South America.

In any case, Netflix will welcome a subscription formula with ads on a date still unknown. It will join the three already in place: the Essential package (€8.99 per month), the Standard package (€13.49 per month) and the Premium package (€17.99 per month). To see in which price range this fourth model will settle, and with what advantages: will it be closer to an Essential plan or a Standard plan, but the ads more for a lower price? We can also think of the possibility of adding ads to an already existing formula, in order to lower the price of it. In addition, it remains to be determined how the advertisements will be integrated into the subscription: recently, Netflix has integrated video games into its catalog.

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