The video streaming service says it is in discussions with several potential partners to offer a cheaper subscription partly funded by advertising.
It is now done. Netflix will indeed offer a more accessible offer that it will finance in part through advertising. Ted Sarandos, Co-CEO of Netflix, has just confirmed that the platform is in discussions with several partners to create a new, cheaper offer, partially funded by advertising.
But Netflix wants to make sure its model will be viable. Even if the platform is associated with a renowned partner in the field of advertising, it wants to be sure to offer an advertising experience “more integrated and less disruptive” than advertising broadcast on traditional television to its viewers.
“What we do at the start will not be representative of what the end product will be. I want our product to be better than television. ” did he declare. “If it becomes so big that we wish we had more control over it, then we could [construire notre propre entreprise publicitaire] he concluded.
Advertising to the rescue of Netflix?
Netflix, which had so far distinguished itself for its anti-advertising positions (Reed Hastings, the platform’s CEO was still firmly opposed to it in 2020), will therefore turn around to try to save a ship in bad shape. Because for the first time in ten years of continuous growth, Netflix has seen its number of subscribers drop.
In an attempt to counter the loss of more than 200,000 subscribers attributed to account sharing, Netflix was considering charging a supplement to subscribers who practice this practice. The platform then said it was thinking about offering a new, cheaper offer, partly financed through advertising.
But the platform’s real problem arguably lies elsewhere. The successive increases of recent years have most likely tired users. The cost of the highest subscription to Netflix (17.99 euros per month) is almost as expensive as subscribing to subscribe to Disney+ (8.99 euros/month), Prime Video (5.99 euros/ month), and Apple TV + (4.99 euros/month) at the same time. In addition, Netflix’s current offer is now as outdated as it is unfair (you have to pay more to watch content in 4K), while the competition offers a single price for everyone.
Source :
wall street journal