the arrival of ads confirmed by Ted Sarandos, the boss of the platform

the arrival of ads confirmed by Ted Sarandos, the boss of the platform

After months of speculation, Netflix’s co-CEOTed Sarandos, has confirmed that there will soon be ads on the platform.

It’s been months now that rumors have been circulating about the addition of ads on the Netflix streaming platform and that subscribers are torn around the idea, a rather understandable annoyance since it is precisely the absence of advertising that was the strength of the platformbut which was also its main selling point.

But since its loss of historic subscribers, nothing has gone right for the platform. After announcing that they could ban account sharing after announcing a change in strategy, it was the question of advertising that was put on the table. If in April 2022 the arrival of advertising was only envisaged, it is now official, advertising will invade the platform.

In Cannes, in May, there is obviously the festival and the film market, but in June there is the international festival of creativity, formerly called the international advertising festival, which has been rewarding the best advertisements every year since 1954. , posters and other marketing projects. In other words, it’s “the place to be” for advertisers and it’s where Ted Sarandos, the co-director of Netflix broke the news :

“We left out a whole section of our customers, namely those who say, ‘Hey, Netflix is ​​too expensive for me and I don’t mind advertising. We add an offer with advertising, we do not add ads to the Netflix you know today. We add ads for people who say “Hey, I want to pay less so I’ll watch ads.” »

Subscribers who will quickly escape from the platform… or not

Ted Sarandos therefore confirms that advertising will be present on Netflix, but that in exchange, the subscription will therefore be cheaper. A piece of news that will perhaps delight those who have complained about the very recent increase in prices. This new offer will therefore be added to the other types of subscriptions and, for the moment, only subscribers who have chosen this offer will have to watch these advertisements.

If the arrival of the pub is likely to make waves, consumers are so used to consuming ads all day long that we doubt that this news has any real impact on the number of subscribers. It therefore remains to be seen whether the platform will force the viewer to watch an advertisement in full, or only a few seconds, whether it will broadcast it before a program or during it, and above all how often (once per episode, every hour, or half -hours, etc).

Checkers Game: photo by Anya Taylor-JoyWhen Netflix will ask you to choose between ads and money

This new direction, in complete disagreement with the initial position of the platform, was therefore not the only recent consequence since the website Deadline rightly reports that Netflix just laid off 300 new employees whereas 150 had already been made redundant last May. At this level, we can only observe that the streaming giant is in trouble. The outlet shared the statement from one of the platform’s spokespersons:

“While we continue to invest significantly in the business, we have made these adjustments so that our costs increase in line with our slower revenue growth. »

If the loss of 200,000 subscribers had already had the effect of a bomb, according to Deadline, the platform could soon announce that it has in fact lost 2 million customers. Even if several reasons can explain this maddening loss of subscribers, rising prices, less and less original proposals and competition from other platforms like Disney +, we imagine that Netflix could take other drastic measures to try to bail out. its tills without upsetting its customers too much, because we doubt that the arrival of a subscription with advertising can really reverse the trend.

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