Tech

Netflix continues to prepare its plan with advertising

After a long time denying the possibility of a cheaper plan and with advertising, the last presentation of Netflix results marked a before and after, opening a door that, until that moment, seemed closed. Not blindly, that also has to be said, because in a very intelligent way the company applied the mantra “never say never”, although it trusted that its business model was more sustainable without the need for this resource.

The bad numbers for the first quarter, added to an also negative forecast for the second, undoubtedly had a great impact on the Netflix board of directors, which sees its position as market leader threatened by a growing and thriving list of alternative services, many of which have also claimed for themselves, making them no longer available in the Netflix catalog. It’s not a simple situation, that’s for sure.

And so much so, and surely the pressure is such, that if at first the debut of the plan with advertising was considered as something that would potentially arrive next year, later we learned that it could be brought forward at the end of this year, probably in order to compete with the plan, also with advertising, announced by Disney + and that it will debut in the United States this year and in international markets next year.

What is not yet clear is the exact model of this plan, and I am not referring to public opinion, that is, what we may know, but to the company itself. And it is that, as we can read in Engadget, the co-director of the company, Ted Sarandos, confirmed to the guests at the Cannes Lions festival that Netflix is ​​preparing its plan with advertising, but it will not be something like what has been seen so far. This, of course, leads us to think that they are studying some new model, and we already know that Netflix always takes changes very seriously.

Although the manager did not give more details about it, it has recently been leaked that Google and NBCUniversal are the main candidates to help Netflix build the ad plan. Either would likely have an exclusive agreement to serve and (at least in NBCU’s case) sell ads. Roku has also had early talks, according to the insiders. Industry executives speaking with Netflix reportedly haven’t learned any hard details, such as how many ads will be seen each hour or whether there will be ad targeting based on content or user profile.

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