Through the voice of its content director, Ted Sarandos, Netflix announces that its future cheaper offer, financed by advertising, will also offer less content.
Bad news for those who were eagerly awaiting a price drop from Netflix thanks to the display of advertising on the platform. Indeed, the most affordable offer should also be amputated from some of its content.
Cheaper Netflix, but with less content and advertising
Last June, Netflix formalized the arrival of an offer financed by advertising. The objective was to be able to continue to supply the budgets of its productions while having the possibility of proposing a less expensive offer to its subscribers. Since then, Netflix has found a partner to deploy this new offer. The streaming platform will use Microsoft’s advertising management.
If this offer is likely to interest you, you will have to make a little more concessions than simply seeing advertisements displayed between your content. Indeed, some content will simply be missing from the catalog.
If it’s any reassurance, all of Netflix’s original content will still be available. On the other hand, some content from other studios and distributors could be excluded from this appeal offer, as Ted Sarandos explains:
“Today, the vast majority of what people watch on Netflix, we can include in the ad-supported stream. There are some things that aren’t, and we’re in conversation with the studios about that, but if we launched the product today, members of the paid tier would have a great experience. We’ll be removing some, certainly not all, of the extra content, but we don’t think that’s a big rollback for the industry. »
A subscription that will not arrive before 2023
Netflix has also confirmed that it has lost almost a million subscribers, 970,000 to be exact, during this last semester. The time is no longer for unbridled growth, but the situation is far from catastrophic. The streaming platform was able to take advantage of its big licenses like Stranger Things to keep audiences hooked.
The subscription including advertising should not arrive, at the earliest, before the beginning of the year 2023. Netflix also specified that the first countries to receive this option will be the countries in which the advertising expenditure is high. It remains to be seen whether France will be affected or not.
The delay taken by the advertising formula is explained by the necessary revision of the contracts which bind Netflix to the other studios. These contracts currently do not provide for any advertising. Thus, some studios could choose not to offer their programs on the advertising offer.
This new initiative from the streaming giant is also accompanied by a hunt for account sharing on the part of Netflix. The company thus hopes to increase its income in order to finance ever more numerous and expensive productions to stem the flight of subscribers to Disney +, Apple TV + or even Amazon Prime Video.
Source :
Deadline