The Netflix with ads It is just around the corner. The cheapest version of the service in exchange for tolerating a bit of advertising was not expected for another two years. The company, however, has accelerated its plans. According to an information note to its workers, broadcast by several North American media, the service with advertising could start at the end of 2022. The 200,000 clients that Netflix has lost in the first quarter of the year (and the two million less that they expect for the next) has not only caused the distrust of investors. It has also caused a real revolution within the company, which is now about to embrace something that it had always been most belligerent towards: advertising at its service. A measure that will not come alone, but will be implemented in parallel to certain restrictions on shared accounts.
The decision to put ads in a service that has been sold to us as the quintessence of comfort has caused a barrage of criticism from users. Netflix has always prided itself on giving the user what they want, and If there is something that the client has left over, it is the ads. But it is not a capricious decision. The company is aware that, despite being the market leader, it is in a weak position. Their competitors have a safety net that they don’t. amazonthe business of ‘ecommerce’. Disneytheatrical releases, theme parks or the sale of licenses, among many others. Manzana, the sale of ‘hardware’. The benefit of Netflix, however, is in a single basket, the one in which its customers deposit the service fee monthly.
All diversify or die. Launching an ad-supported version Netflix kills two birds with one stone. On the one hand, it opens the door to another source of income that can potentially bring you a lot of money. Two decades active monitoring the habits of its customers and a global audience present in more than 190 countries is candy for any brand. On the other hand, it will allow you to be more flexible with the price, since the ad-supported versions of these services are usually considerably cheaper. Price is, in fact, one of the most problematic issues for Netflix. While their rates have not stopped growing in recent years, the most recent launch platforms have come onto the market with very competitive prices and introductory offers they simply can’t match. Netflix, the platform where until recently you could watch almost anything, not only costs more than the competition: it also has lost much of the catalog that raised itwhich has returned to its rightful owners, to these new services at a much more affordable price.
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Analysts and investors have greeted Netflix’s decision to offer a cheaper ad-supported version with renewed optimism, although the response from users has been far less enthusiastic. Business logics are not always reasonable for the customer. This one, in particular, could go very well or terribly wrong. It could certainly keep people from unsubscribing or even encourage new hires, but it could also get existing customers to switch to the cheaper plan. There are also doubts about whether the intensity of the marathons, the company’s strong point, will be the same in the case of users subjected to advertising breaks from time to time, or if the company will be able to continue maintaining such tight control over the information of its audiences. .
Something has changed inside Netflix, the service that revolutionized home entertainment by changing all the things you didn’t like about television. The company that bragged that its customers came first, but is now poised to share its heart with advertisers. That’s why he walks with lead feet. He is aware that the brand runs the risk of losing its shine, that casual and modern air that turned its customers into fans and fans into legion, if it mutates into something more outdated and old. In something very similar to what we call television.