Netflix is set to use adverts in a strategy to attract new subscribers, reportedly after losing around 1 million subscribers. More adverts, less cost. This is set to launch in November. Cost-friendly for subscribers; and provides a massive platform for advertisers. A win-win strategy for subscribers as well as advertisers.
Netflix this year has been facing issues regarding the retention of subscribers. The dip in the number of subscribers is an alarming issue for Netflix. Netflix reportedly lost around 1 million subscribers from April to July. The high-end rates are causing problems for subscribers. On top of that, Netflix has been competing with Prime, Disney+, and many more OTT platforms, which are comparatively cheaper than Netflix.
Netflix has come up with a new type of subscription to tackle this challenge. Now, Netflix is set to introduce basic subscriptions with advertisements. The subscriber now pays less compared to normal rates and can access all the content available other than licensed restricted. This is available on all devices. This new plan is set to launch in November.
Netflix’s Chief Operator and Product Officer Greg Peter explained how this new scheme is everything that customers love about Netflix is available for less money with a few commercial breaks in Basic with Adverts. The opportunity to access a larger audience, including younger viewers who are less likely to watch linear TV, in a premium setting with a seamless, high-resolution advertising experience is what makes Basic with Adverts such an intriguing platform for advertisers. So it is relatively helpful for advertisers to promote themselves as well as cheaper rates for the audiences to stream. A sort of win-win situation for both the subscribers and advertisers.
Now it is claimed that Netflix has collaborated with Microsoft for this new subscription method. It is said that 4 to 5 minutes of adverts will be streamed in an hour of streaming. The advertisements would be up to 15 to 30 seconds and would be streamed before and/or between streaming selected content. It is said this is an additional plan to all the other existing plans. Generally, Netflix charges 10.99 pounds per month but this new subscription is said to be charged 4.99 pounds per month. On its website, Netflix.com, users have the option to sign up and cancel at any moment. On its website, Netflix.com, users have the option to sign up and cancel at any moment.
This is a great initiative taken considering all the factors in mind by Netflix. It provides a significant platform for advertisers to advertise their products and services. This strategy to look after every single fan/user/subscriber is a motivating step towards increasing Netflix’s engagement.
Netflix is currently facing stiff competition from Amazon, Disney+, Hotstar, and many other OTT platforms. This new advert-based subscription might be a positive decision for Netflix. Since its founding in 1997, Netflix has changed the game for the entertainment sector. The business began as a DVD-by-mail service but has now risen to become a significant participant in the streaming industry. Regardless of the recent decline in members, Netflix still has over 220 million users globally and is growing at a remarkable rate.
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