5 euro subscription flops! Netflix has to pay back advertising revenue

The disillusionment should be great for those responsible at Netflix. In the fight for the public’s favour, the streaming provider introduced a pricing model that is favorable for end customers, which is partly financed by advertising in addition to technical and content restrictions. The hope was to attract potential customers who were less willing to pay. So far, the offer has apparently met with little interest subscription numbers are poor. Netflix apparently even feels compelled to refund money to advertisers.

This is how Netflix works with ads

In the fight for increasing subscription numbers, various streaming providers are currently expanding their offerings. For example, expand Paramount Plus to other countries and has been available in Germany since December 8th, 2022. Like Netflix, Disney Plus also offers a subscription plan with advertising – you can find all the information about this in this news report.

With the advertising revenue, Netflix is ​​able to significantly reduce the monthly price for end customers. Starting from 4.99 euros you can subscribe to Netflix, but only stream on one device, and this with a maximum resolution of 720p HD. However, it should be noted that not all content is included in the promotional subscription. Unfortunately, you have to do without more than 180 films and series

Ad-supported subscription proves a flop for Netflix

All these disadvantages apparently lead to the fact that only a few people choose the cheap rate from Netflix can heat. According to various sources from the advertising industry, Netflix missed the promised viewer guarantees for booked advertising. Apparently, the viewer numbers so far are about 20 percent below the targeted minimum target in order to charge advertisers a corresponding amount.