- BBC News World
Netflix has never wanted ads… until now.
The platform is affected by the loss of subscriptions – about 200,000 between January and March of this year alone – the platform seeks new formulas To attract customers and revenue.
The giant that built its entire strategy on subscriptions to watch movies and series in live broadcasts and without ads, has just finished Collaborate with Microsoft to offer a new, cheaper plan But with ads. The Bill Gates company he founded has been chosen as a global partner in advertising technology and sales.
The new plan, which is still Not disclosed how much it will costIt will not replace those already without ads, but will be offered as an additional option. Thus customers will be able to choose between paying less, but with advertising breaks, or keeping the usual subscription, the price of which the company has not announced at the moment. The plan could be ready by the end of the year.
Reinforced by restrictions
The company, which began mailing DVD movies and series to subscribers in the late 1990s, has grown steadily over the past decade. Lockdowns due to the coronavirus pandemic gave the platform a huge boost, when millions of people confined to their homes decided to Kill boredom while sitting in pajamas in front of the TVespecially with Netflix on their screens.
“Netflix and blanket” or “Netflix binge” have become common expressions in the popular lexicon.
With these curves in mind, analysts had expected the platform to gain 2.5 million subscriptions earlier this year. However, nothing is further from reality. The company lost 200,000 customers, and it is expected That between April and June he lost 2 million more. Shortly after those numbers were announced, the company lost $50 billion in market value, the first drop since October 2011.
The competition in the world of streaming platforms is fierce, and now Netflix has to do just that Share the cake With others like Amazon Prime, Disney+, HBO Max, or Apple TV. To all this, we must add the 700,000 subscribers that it lost when it closed its service in Russia due to the war in Ukraine, and according to the platform, users exchange passwords, which translates to less income.
In addition, “the increase in the cost of living has made Many families tighten their belts And consider canceling your Netflix subscription to save. This has spooked investors,” says James Clayton, BBC North America technology correspondent.
The platform transformation also shows that “advertising, things that high-quality broadcasters considered old-fashioned only a few years ago, are still alive and well,” Clayton says.
The first result? Last month it was announced Dismissal of 300 employees. secondly? Advertisements for new funding sources.
“It’s still early days and we have a lot to discover,” Greg Peters, COO of Netflix, said in a statement. “But our long-term goal is clear. More choices for consumers and a better premium TV experience than traditional for advertisers.”
The company, which also produces its own content Re-negotiation of agreements It has with entertainment giants such as Warner Bros. and Universal and Sony Pictures Television to be able to display ads in their products, according to the Wall Street Journal.
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