Netflix co-CEO Ted Sarandos has endorsed what has been an open mystery for some time. Ads are coming to Netflix.
According to the Hollywood Reporter, Serendus confirmed the leaked reports in the second week of May and revealed that a cheaper, ad-supported tire from Netflix was coming.
Hence it is confirmed from reports that a cheaper, ad-supported tire from Netflix is coming.
In 2022, for this purpose things are moving fast for Netflix. Back in early March, Spencer Newman, the company’s chief financial officer, was asked about the possibility of an ad-supported rating, and he could only say “never” when asked about the idea. Add it quickly before. It’s “nothing in [the brand’s] plans right now.”
Then, on April 20, during a monetization call, Red Hastings, another co-CEO of Netflix, and partner-in-crime at Serendous, revealed that the streaming service is currently looking for a collaborative level of advertising. ” Was quite open “and can be guessed. It will be phased out in the next year or two. “
Now, though, advertisements are coming in, with Sarandos saying on stage at Cannes Lines, which is currently taking place, a five-day industry festival, that he wants to “get a big customer base.”He also confirmed that the rankings will be a separate offer and that ads will not appear on existing subscribers’ Netflix accounts.
When asked about advertising on the platform, Serendus said: “We’ve left a large customer base who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising.
We’re adding an ad level, we’re not adding ads to Netflix as you know today. We’re adding ad rank for people who say, ‘Hey, I want a lower price and I’ll see the ads.’
He did not provide details on when the ads will appear on Netflix, but, if previous reports are correct, they will be before the end of 2022. Sarandos was also excited about the company’s prospects, adding that Netflix “has enough … to grow this business, and profits and free cash flow.”
The move comes as Netflix seeks to win back subscribers whose subscriptions have been slashed by several increases in the monthly cost, and to attract those who have yet to join Netflix. This comes after it announced in late April that it had lost 200,000 subscribers since the beginning of 2022, and as a result, sought to increase revenue after seeing a decline of more than $ 70 billion in value
Netflix was the only way to get ads on its platform without creating a wave of anger among its existing subscribers. The idea that subscribers who receive a basic streaming service offer will accept the possibility of sudden ads appearing halfway through a stranger’s episode is a delusion.
Sarendos only confirmed the fact that there would be ads, he did not say how much the ad-supported subscription tire would cost, how often the ads would appear and how long the commercial break would last, in all likelihood. The reason is that Netflix executives have not decided on that either.
Netflix needs to change something. The cost of the crisis of life has seen people prefer their streaming services, and there will be no benefit from the price increase in March this year.
If advertising prevents Netflix from cancelling so many shows and laying off staff, it would be a good decision. We just need to see how much it costs and how many ads they want us to see