Copyright © BusinessAMBE 2023
There is a chance that in the near future
In the news: Although nothing has been officially said about it,
Netflix and ads
Background:
- However, it has since become clear that that monthly fee may not be high enough, which is why the streaming service regularly raises its prices.
In order to generate additional revenue as well as attract more subscribers,
- However, it soon became clear that interest in this subscription with ads was not very high. Some advertisers therefore reportedly even asked for their money back.
-
The problem with this is that
Netflix still sees ads as an option. Other streaming services like Prime Video offer advertising by default in a lot of countries unless subscribers pay more.Netflix does just the opposite, which has its impact on the number of people who subscribe to Basic with Ads.
-
The problem with this is that
-
To remedy that,
Netflix has removed the regular Basic subscription in countries that have Basic with Ads. Thus, the difference in price between the advertising subscription and the cheapest subscription without advertising is even greater.
Free subscription?
Meanwhile, ad revenue for
However, it is difficult for
Two solutions: According to insiders,
- The first possibility is to show every subscriber advertising in some way. The streaming service already plans to do that anyway with their live sports, such as WWE and NFL. If that comes to regular series and movies as well,
Netflix risks being overloaded with criticism. -
Another possibility is to introduce a free subscription with ads in some countries. That should create many more subscribers to whom
Netflix can show advertising. In the past,Netflix experimented with this inKenya , but later discontinued that subscription.-
For now, it is not clear in which countries such a subscription might come.
The United States seems ruled out becauseNetflix has too many paying subscribers there. Large markets with popular free TV channels that show advertising are the most likely. These includeGermany andJapan .
-
For now, it is not clear in which countries such a subscription might come.
![](https://d3bze35mkjv6a3.cloudfront.net/news-content/64cbb73e-29c7-424f-af56-215e41879e88/e2c06ca6171cfeb732ec09aa21c58a5a51ecedd2.jpg)
© The Content Exchange, source