Ads are coming to Netflix. In the past, the Los Gatos company was opposed to the idea of offering an ad-supported offer. However, today, as his number of subscribers decreases, he changes his opinion on the subject.
The SVOD has already indicated that it will offer a low cost offer which will be partly financed by advertising. And a partnership with Microsoft, which will manage the advertising space, has also been announced.
At the moment, it is not yet known when this offer will be available. But in the meantime, the rumors on the subject are already numerous.
Recently, for example, we mentioned the fact that the download functionality, which allows you to watch content offline, should not be available on the low cost subscription. On the other hand, it is possible that Netflix does not offer the entire catalog of the standard offer on this low cost subscription.
In other words, the affordable Netflix subscription will have quite a few disadvantages compared to the standard subscription, in addition to the fact that the user will be forced to see ads. But the good news is that Netflix has reportedly set limits on these ads as well.
Limits for advertising on Netflix
In an article published recently, our colleagues from Bloomberg indicate that Netflix has indicated to its partners that it will not broadcast advertisements during viewing of children’s content. And besides, it wouldn’t be allowed by some of the companies that SVOD licenses children’s content from.
Besides that, the company has also reportedly decided that the original movies will be released without ads, at least initially. This would allow the company to reassure the best filmmakers.
It is also possible that the SVOD does not have the right to insert ads on certain content (under the license agreement) and that it broadcasts its ads before and after the video, but not during it. Netflix will have to ensure that the way ads are broadcast respects the deals made with the rights holders, for each film or series.
Of course, for the moment, this information is still unofficial. And therefore, caution is in order. But in any case, the launch would not be imminent, contrary to what we had previously thought. According to Bloomberg, the new subscription wouldn’t arrive until next year.
Once launched, it could allow Netflix to generate several billion additional dollars per year, while boosting the growth of the number of users.
Otherwise, in addition to developing this affordable subscription, Netflix is also looking into the case of account sharing. Formerly tolerated by the company, this practice is also targeted by society.
In Latin America, tests are underway to charge subscribers who wish to share their accounts. For example, one such test is to charge the user an additional fee if their account is used in multiple households.
And at the same time, the company is betting on gaming to try to attract more users. Today, the Netflix subscription provides access, at no additional cost, to a catalog of mobile video games. In addition, it is more and more interested in cloud gaming.
