Tech

Netflix resolves to display ads to counter the massive loss of subscribers

For the first time, the Netflix CEO admits advertising will soon be coming to the streaming service. This very special decision comes in a context that is just as special for the firm. During the presentation of its latest financial results, it admits having lost nearly 200,000 subscribers.

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When it arrived in France in 2014, Netflix swept up everything in its path. Within a few months, the platform attracted millions of subscribers, eager for a legal solution to watch films and series. Nothing, then, seems able to get in his way. But, at the end of the 2010s, things went wrong. The competition has sniffed out the vein and everyone is going for their own streaming service. For two years, the loss of speed has been flagrant for Netflix.

We have to face the facts: there are too many streaming services for users, who simply don’t know what to watch anymore. While Disney + is now neck and neck with Netflix, the latter displays for the first time a financial balance sheet at half mast. The sentence fell on April 19: Netflix lost 200,000 subscribers during this last trimester. This has never happened in the history of the firm.

Related: Netflix Adds a “Like” Button to Improve Its Series Recommendation System

It’s official, the ad is coming to Netflix

If the news is bad for Netflix, it is all the more so for users. Indeed, the platform intends to find a way to make up for the shortfall. However, the existing solutions are not multiple. “Those who follow Netflix know that I have always been against the complexity of advertising and a big fan of the simple subscription”, begins Reed Hastings, CEO of the firm. You know where this leads.

“But as much of a fan as I am, I’m an even bigger fan of consumer choice”he continues. “And allowing consumers who would like to have a lower price, and who are tolerant of advertising to get what they want, makes a lot of sense. » The announcement is therefore made. Within a year or two, advertising should therefore make its arrival on Netflix. A surprise that is not really one, as the thing has been the subject of rumors in recent months.

Source : The Hollywood Reporter

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