After dwindling subscribers: Like Disney, Netflix plans to use advertising in the future

Netflix is ​​now showing a reaction to the many subscribers the streaming service has lost and the slumping share price in the first quarter of 2022. In an interview at the advertising industry’s most well-known event, the Cannes Lions, the Netflix co-CEO assured, Ted Sarandos that a subscription tier with advertising is planned for the streaming service.

“We left a large segment of customers off the table, which is the people who say, ‘Hey, Netflix is ​​too expensive for me and I don’t mind advertising,'” said Ted Sarandos. “We [fügen] add an advertising layer; we don’t add ads to Netflix as you know it today. We’re adding a layer of advertising for people to say, ‘Hey, I want a lower price and I’m going to watch an ad for that.'”

What else is new with Netflix and the competition?

Netflix was expected to add an ad-supported subscription tier in advance, as its second CEO, Reed Hastings, envisioned it two months ago in April. These announcements came as Netflix lost subscribers again in over a decade in the first quarter of 2022, down 200,000 compared to Q4 2021. With around 222 million subscribers, Netflix remains the world’s largest streaming provider, but the bounced recent events to give thought to the boardroom’s attitude towards advertising.

It is not yet clear which companies Netflix is ​​working with to sell ads. Ted Sarandos replied that they are talking to everyone. meanwhile will according to the Wall Street Journal Google and NBCUniversal traded hotly. When asked about a possible takeover of Netflix given the fallen share price, Ted Sarandos explained that this could always happen, but he believes that Netflix will work its way back up on its own. As for the rumors that the company might be looking to buy a streaming hardware company like Roku, he countered that it wasn’t necessary, according to the Wall Street Journal.

Appropriate: Netflix continues to lose subscribers and lays off 300 employees

The competition for Disney also wants to go down the path of an advertising-financed subscription level and also introduce one for its Disney+ service by the end of 2022. This is to be rolled out first in the USA and finally make the rounds internationally in 2023. Disney plans to limit ads to four minutes an hour.

Source: via The Verge