Already mentioned by the tenors of the company during a question and answer session with investors last April, the integration of advertisements on Netflix will indeed be a reality, as confirmed by the co-CEO of the service.
Netflix is about to change paradigm. The SVOD platform is currently going through a delicate period, having for the first time in its history lost subscribers – 200,000 in total – in the first quarter of 2022. Pessimistic in its forecasts, the group estimates that two million users will stop their subscription by the end of the first semester.
The Los Gatos firm is therefore seeking to breathe new life into it to move forward thanks to financial levers never before explored. Advertising, in this case, is clearly part of the small papers of Reed Hastings, the CEO. The interested party had already mentioned it last April to investors.
Plant the little seed
The subject came back on the table at the end of June, but in a much more public way this time. Co-CEO and Content Director of Netflix, Ted Sarandos dwelt on the issue at the Cannes Lions International Festival (June 20-24). It is also nothing trivial that the interested party chooses this meeting to talk about it.
The Cannes Lions International Festival is one of the biggest events in the advertising and communication sector. It is moreover the first time that Netflix goes there, underlines Hollywood Reportersproof that the company is arousing a certain interest in this sector.
More concretely, Ted Sarandos seeks to plant the little seed in everyone’s mind. He did not hesitate to multiply the interviews to evoke the subject, which one finds for example in the columns of the wall street journal and Sway. Advertising was logically at the heart of the discussions.
For him, Netflix “ does not add ads as you know it today“. The idea being to add a level of advertisements “so that people who say to themselves: ‘I want a more affordable price but I will watch advertisements’“. Implicitly, Ted Sarandos mentions here a cheaper subscription than the current offer, but with advertising spots.
A takeover, “always a reality”
Incidentally, this perspective does not appeal to you at all in view of our survey carried out last April: 65% of you said they were not ready to pay a cheaper Netflix package with advertising.
As mentioned in the Wall Street Journal and relayed by our colleagues atNumeramaNetflix could control its advertising content, in order to make it “more integrated and less intrusive“, without further details. The fact is that talks with potential partners are currently underway, the interlocutor confirmed.
On the takeover rumours, the latter admits that “it’s always a reality– but let’s not get carried away either – although Netflix could find its way back to growth on its own in the coming quarters. It is up to him to increase his attractiveness to achieve his ends.
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