After Netflix recently failed to show an increase in user numbers for the first time in history, advertising is now also to be placed on the streaming platform. We’ll tell you why that might even make total sense.
2022 has been a black year in Netflix history so far. For the first time in its existence, the streaming provider recorded a decline in users: Instead of the targeted additional 2.5 million subscribers, 200,000 users were lost in the first quarter of the current year. The result: cutbacks were made immediately, numerous projects were immediately canceled and, among other things, a wave of layoffs in the animation sector followed.
In the future, there will be more content that is suitable for the masses, which at first sounds like cutting off creative, courageous films and series and instead investing primarily in material that appeals to a particularly broad audience. Considering the tremendous success of questionable content such as “365 Days” and “365 Days 2: This day” everyone can imagine at this point what that could mean for the coming years. But now follows what might sound like a (further) shock for many paying customers: Netflix is to rely on advertising in the future – starting in 2022! We’ll tell you why that might not be as bad (and nonsensical) as you might think.
Advertising on Netflix: Stream cheaper
After the user decline, advertising doesn’t necessarily sound like a tried and tested means of getting the numbers back on track. Because one thing is clear: Above all, those who use Netflix enjoy being able to watch films and series without any advertising – because it’s really annoying and tears you out of the stories again and again. So why should exactly this step attract potential new customers?
So, Above all, you want to offer Netflix cheaper with an advertising tariff. Alternatively, there could be a “surcharge variant”, so to speak, that runs without advertising. A perfectly understandable step, after all, with Netflix, Amazon Prime Video, Disney +, Sky Ticket, and Apple TV + as well as many other streaming providers (and the upcoming launches of Paramount + and HBO Max, among others) for many film and series fans at some point The limit has been reached as to how much you want or can pay for streaming subscriptions. Alternative solutions are therefore needed.
Citing two anonymous sources, the New York Times now that Netflix is targeting an ad-supported plan before the end of the year. Co-CEO Reed Hastings has already announced that he wants to find a solution to this “in the next one to two years” – which is now to be implemented soon.
Action is also taken against account sharing
Many share their Netflix subscription with friends or family – because that’s practical and saves money. But things are about to change here too. However, shared Netflix accounts should not be prohibited but should be possible for an additional charge. Statistics from the first quarter of 2022 show that a full 100 million households use Netflix via a shared account – and that this could therefore be a large additional source of income for the streaming giant.
A test run in some countries, in the course of which an additional $2.99 per month was incurred, seems to have made those responsible at Netflix confident that they would adopt the concept worldwide. When and in what form all this will ultimately be implemented in Germany is not yet known.