Netflix lost 1.2 million subscribers in the first two quarters of this year, including a record 970,000 in the second quarter, forcing the platform to change its core strategy.
In 2020, Netflix CEO Reed Hastings announced that he was not interested in running ads on the platform. However, after consecutive quarters of decline in revenue and subscriber numbers, Netflix finally had to run ads from November this year.
Accordingly, Netflix will offer an advertising-supported service priced at 6.99 USD/month. Users will have to watch an average of 4-5 minutes of ads per hour and cannot download movies and TV shows. Ads will be 15 or 30 seconds long and will be played before and between the movie.
Initially, there will be no ads in children’s shows and new movies. Older movies may have mid-roll ads. In addition, for this ad must-see plan, some shows and movies will not be available, users can only watch the resolution at 720p, not HD.
Netflix will offer an advertising-supported service priced at 6.99 USD/month.
Netflix will officially launch this service in Canada and Mexico on November 1. Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, UK and USA are November 3, and Spain is November 10.
Netflix’s 6.99 USD/month will be cheaper than Disney+ and Hulu’s bundles, both of which cost $7.99/month. HBO Max is the most expensive platform when it costs users $ 9.99/month.
Netflix also announced that it has chosen Microsoft as a service provider so that this online movie platform can launch ads in the next few months.
Advertisers and market analysts all rate Microsoft as the best choice for Netflix.
First and foremost, Microsoft is not operating any streaming services that rival Netflix. Meanwhile, Google has YouTube and YouTube TV, and NBCUniversal has Peacock. Netflix has always wanted to avoid these troublesome relationships, and potential conflicts in the future.
Second, Microsoft has a pretty good and clean reputation when it comes to privacy. Although Microsoft makes a lot of money from digital marketing, such as 8.5 billion USD from Bing and 10.3 billion USD from LinkedIn in 2021, the tech company doesn’t have much of a reputation for privacy violations like Google, Meta or Amazon.
@ Zing News