Tech

Are we going to have advertising on Netflix?

after the disastrous netflix financial results This first quarter of 2022, the Los Gatos company is still less confident for this second year, since they estimate that they will lose a couple of million users between now and July. Netflix has to seriously rethink its business to get back on the upward path. During these last days, the company’s shares have lost half their value, and Netflix is ​​already testing its next move to withstand the pull: bombard us with advertising while we use your platform.

Netflix is ​​considering its options to stop its fall

Would you be willing to pay a little less for Netflix in exchange for see advertising? Would you unsubscribe from Netflix if your membership still cost the same, but you had to watch a couple of commercials before each episode of a series? Well, this is the panorama that Netflix is ​​studying to curb bearish forecasts they have for the next few months.

In a recent press release, Netflix continues to blame its users. The company considers that its poor results are due to users sharing passwords As if they themselves had not encouraged this practice. According to the company, their presence in homes is high, but there is no discrepancy between Netflix’s market penetration and the income they are receiving. For the same reason, measures are being considered to maintain their profit margin.

– Netflix Spain (@NetflixES) February 14, 2020

Advertising could save the streaming platform from trouble

users download netflix

Netflix has it quite complicated to calm the fury of its shareholders, who have even sued the company, considering that they have not shared with them all the information regarding the state of the business and future prospects. However, everything seems to indicate that they will opt for a middle way: advertising.

And it’s not crazy. More than 200 million subscribers, a couple of ads per session per day are more than enough to get a good return and finance the expensive productions of the platform. Netflix has not yet defined very well what this advertising will be like and what type of accounts it will be directed at, but they have stated that it will not be intrusive for the user. There are people who have already speculated about this and consider that it will be an innovative new advertising format, but it would be absurd to think that way. We will most likely see a YouTube-like system. After all, Netflix should not make it difficult for advertisers and it would be good for their platform if they recycle their advertising pieces on Netflix.

What other payment platforms are financed with Advertising?

DAZN

Netflix has not invented anything new in this field. A few months ago, the sports streaming platform DAZN released a similar feature. In this case, it was quite negative for the user, since the membership rose from 10 to 12.99 euros per month and advertising was added: a couple of one-minute or longer ads that we cannot skip and that prevent us from watching the broadcast on direct until we have finished visualizing them.

Recently, amazon published for the first time the money they generate by placing ads related to our searches in their store. In 2021, those of Jeff Bezos generated a 7% of earnings totals of the group with advertising revenue alone. Therefore, Netflix’s decision may be controversial, but it will be profitable for the company for sure.

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