Netflix has reportedly advanced its plans to offer a cheaper package with advertising by the end of the year. The opportunity also to fight against account sharing.
Netflix is in turmoil. During the last quarter, the SVoD platform lost 200,000 subscribers and expects to lose another 2 million over the current quarter. A blow that forces society to review some of its choices.
Among the reasons for this flight of subscribers, the increase in the price of the subscription is the most obvious, especially in the face of the prices of the competition which remain stable. During a question and answer session with investors, Reed Hastings (CEO of Netflix) therefore raised the possibility of launching a cheaper subscription, funded by advertising. An economic model already present on HBO Max for example and which was then only to arrive within a year or two. But things are changing…
Advertising in Netflix by the end of the year
According to the very serious New York Times citing an internal note addressed to Netflix employees, the big pundits of the firm are now targeting the last quarter of 2022 for the launch of these offers. The note in question states that “it’s fast and ambitious and will require some compromises“. Which ? Hard to say.
To take care of the technical part, Netflix would have approached The Trade Desk, an American company specializing in programmatic marketing. It would therefore be targeted advertising.
This choice would be justified in particular by the fact that competitors such as HBO and Hulu offer this type of subscription with advertisements, while “maintaining a strong brand image“. It’s all about marketing, of course, and Netflix will have to maneuver carefully so as not to give its subscribers the impression that prices are rising only to make room for other cheaper ad-supported packages. Among Frandroid readers, you are also a majority to reject this idea.
The end of account sharing?
The note would also indicate that the end of 2022 would also be the time chosen by Netflix to tackle account sharing. While Netflix has long been in favor of this practice, now the service is turning around and starting to tighten the screw.
As pointed out by Reed Hastings during the quarterly update to investors, Netflix could charge for a new option for account sharing. This would reduce the cost compared to taking out several subscriptions, while replenishing the coffers of the company.
These two major changes should therefore arrive by the end of the year according to information from the NY Times, but it is not said that this will have the desired repercussions. While many users were turning away from piracy to prefer the simplicity of legal SVoD platforms, this kind of change could well turn the tide.
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