Advertising on Netflix: Consumers now need to know about the subscription

Created: 11/05/2022 11:11 am

By: Bettina Menzel

Will Netflix Ads Soon?

Experts see great potential for advertising-financed offers from the major streaming services.

© IMAGO/imageroker/Oleksandr Latkun

Netflix has been showing some customers advertising since November 3 – according to the company, it should be up to five minutes an hour.

Los Gatos - Streaming services were among the winners of the corona pandemic.

But the competition is getting tougher.

Giant Netflix began struggling with subscriber dwindling in 2022, which is why the US company decided to break new ground and decide to allow advertising on the platform in the future.

However, only certain customers see the promotional videos.

Who will see ads on Netflix in the future

In the beginning, Netflix was the only major provider on the market - today there are over 200 streaming services worldwide.

The streaming giant is therefore venturing into a new concept and is offering its customers a particularly cheap subscription for 4.99 euros – albeit with advertising.

At the start, the advertising videos should be 15 to 30 seconds long and be shown to customers during or before the films or series.

On average, there should be four to five minutes of advertising per hour of broadcast time, the group said.

The subscription with advertising is a deep intervention in Netflix's business model - and has been in effect since November 3rd.

The good news: Netflix does not show all customers unsolicited advertising, only those who actively choose to subscribe.

Because the previous subscriptions of 7.99 euros, 12.99 euros and 17,

Netflix basic subscription for 4.99 euros at a glance

- 

 up to 720p/HD - Now available for both the existing basic subscription and the new basic subscription with advertising - An

average  of

- A 

 will not be available due to licensing reasons

- 

Other available subscriptions without ads

:

7.99 euros (1 device simultaneously), 12.99 euros (2 devices simultaneously), 17.99 euros (4 devices simultaneously)

There is also another new feature, which may not please everyone.

Because free riders will ask Netflix to pay in the future.

According to its own statements, the streaming provider wants to take strict action against the free sharing of other accounts from 2023.

Therefore, Netflix decides to offer a subscription with advertising

Netflix started its business in 1997 by sending DVDs through the mail - hard to imagine today.

Ten years later, the company switched to the video-on-demand business.

In the pandemic, Netflix has been one of the big winners.

According to a survey by the consulting firm Deloitte, more than half of those surveyed stated in 2021 that they had used streaming services more than in the previous year.

With lockdowns and social distancing in place, it comes as little surprise that people have been spending more time in front of screens during the global pandemic.

In general, however, linear television is playing less and less of a role, especially for younger generations.

Just a few years ago, linear television played the role of the campfire around which the whole family would gather.

In 2022, however, Netflix fell into a crisis, because the streaming service lost customers for the first time.

After a dreary first half of the year and declining user numbers, Netflix was able to gradually win back customers thanks to successful shows like "Stranger Things" and "Dahmer".

In the past quarter, the company booked a total of 2.4 million new paid subscriptions.

"Thank God we're past the quarters of decline," said Netflix CEO Reed Hastings, referring to the declining user numbers in the first half of the year.

The competition among streaming providers is getting tougher, which is why the giant opted for the new business model with advertising.

At the end of September 2022, Netflix had a total of a good 223 million user accounts and growth of 4.5 percent within the past quarter.