Netflix Ads Coming Soon?

Streaming service announces new subscription model

Created: 04/27/2022, 17:43

After recently announced price increases, streaming provider Netflix could also soon have advertising – albeit only optionally.

Los Gatos - Watch your favorite series in a relaxed manner, without annoying commercial breaks - this is not a problem for most customers of streaming providers.

That could soon change at Netflix: The streaming giant is now planning to advertise.

The reason: bad quarterly figures.

In the first quarter, Netflix made subscription losses: Instead of the targeted 2.5 million new subscribers, only 500,000 new ones were added.

Because the streaming provider stopped doing business in Russia because of the Ukraine conflict, an additional 700,000 subscriptions were lost.

Can advertising help?

According to Netflix boss Reed Hastings: With cheaper subscriptions, advertising clips could be inserted, reports the German Press Agency (dpa).

Netflix has never done that before, after all, Hastings would not have believed it until now.

For him, the simplicity of a subscription is still the best, but: "I'm even more of a fan of offering consumers a choice," quoted the dpa.

Drop in sales at Netflix: First the streaming giant announced price increases, now there should also be advertising.

© Stanislav Kogiku/Imago

After a slump in sales, there could soon be advertising on Netflix – some customers don’t like that

In principle, the choice remains: If you don’t want to see any advertising on Netflix, you only have to pay – there will still be an ad-free subscription.

The targeted model is still met with incomprehension on social media.

For example, a Twitter user writes: Netflix is ​​losing customers.

Netflix therefore wants to introduce advertising.

So you want to lose even more customers?" Another writes: "Netflix and advertising means the end of Netflix!"

Despite everything, Netflix would no longer fundamentally reject a subscription model with advertising.

However, when this can be realized is not yet foreseeable – according to Hastings, it could still take about one to two years.

But those aren't the only plans Netflix has left.

Advertising on Netflix: Chef Reed Hastings is actually not a fan of advertising on his streaming platform.

(Archive photo) © Guillaume Horcajuelo/Imago

Many customers share their login details with friends or family members - much to Netflix's displeasure.

According to dpa, more than 100 million households would do this.

Netflix can use the IP addresses to determine who is accessing the streaming platform from where.

It should still be possible to share your subscription, but at an additional cost.

It would take about a year before that could be realized.

Netflix recently announced that it would increase subscription prices in general: This initially affected customers in the USA, Canada, Great Britain and Ireland.

This could also happen in Germany soon, so here is an overview of the current subscription prices:

• Netflix basic subscription for 7.99 euros per month: Netflix can be used on one device, HD and Ultra HD are not available.

• Netflix standard subscription for 12.99 euros per month: Two devices can be used at the same time, HD is available.

• Netflix premium subscription for 17.99 euros per month: Netflix can be used on four devices at the same time, HD and Ultra HD are available.

• There is no longer a free trial month.

  (Source: netflix.com)

Price increase and advertising planned for Netflix: Some Germans would use advertising-supported subscriptions

But there are also people who are not averse to a Netflix subscription with advertising.

According to the results of a study by the AdTech company Trade Desk, 25 percent of Germans would use a cheaper streaming subscription with advertising.

In Great Britain, that would be conceivable for 40 percent.

About two years ago, Netflix increased its subscription numbers: As the big winner of the corona pandemic, Netflix gained 37 million new customers in 2020.

But not only the Ukraine conflict was a problem for Netflix, the streaming provider has had plenty of competition in recent years.

Disney, Amazon, Warner's HBO Max and Apple also offer a streaming platform - Disney+ in particular has some well-known film series and series such as Star Wars and Marvel to offer.

The selection is now very large, Netflix, Disney + and Co offer different content and subscriptions.

(Natasha Terjung)