Netflix has confirmed the launch of a cheaper subscription with ads

Despite still being the undisputed leader in the streaming content segment, Netflix is ​​unwilling to miss out on new customers. The strategy of the offer cheapest ad-supported service it is an irremediable fact. And in the last few hours the company has offered new details on how its implementation will be.

It was hers Ted Sarandosco-executive director of the streaming platform, who teased that the announcements are here to stay in the world of on-demand platforms.

“We’ve left a large segment of customers off the table, which are the people who say Netflix is ​​too expensive for me and I’m not willing to keep paying. We’re adding a layer with ads for people who sayi want a lower price and i will look at the ads‘”said the manager.

The confirmation came in a conference framed in the Cannes Lions International Festival of Creativity. Sarandos noted that they are already in dialogue with companies specializing in advertising. All this, to finish integrating a good ad system on the platform.

Within the advertising industry, there are some well-known companies he is in dialogue with, such as Magnite, FreeWheel, Comcast or Google itself. Sarandos has not confirmed what exact plans they have to associate with these companies, although he admitted that for now what they are looking for is support with which they can achieve “an easy entry into the market”.

Initially, the idea would be to include four minutes of advertising content for each hour of the content airing, so that a user can see it. a maximum of just over an hour of announcements.

Everything seems to indicate that this subscription mode is imminent and will arrive on Netflix in late 2022, offering cheaper options to viewers.

The idea of ​​placing ads on Netflix represents a 180-degree turn from what the company did until recently. For years, its top managers and investors have refused to incorporate advertising into some of its packages, deeming it unnecessary.

Netflix: a complicated economic situation

For a year, with the arrival of new competitors, the portal has been going through a delicate economic situation, with a loss of subscribers which has led to the massive dismissal of employees in all offices.

However, the company has a gigantic market around the world, with millions of captive subscribers and a position of power that they can use to their advantage.

According to data released by the streaming company in April, at the end of the first quarter of the year, some 200 thousand users have decided to leave the platform, which translates into millionaire losses.

The complexity of the situation is that according to Netflix projections, this trend will continue for the rest of this year 2022, possibly losing up to two million subscriberswhich represents a true return.

The challenge Netflix faces is that other services have already announced that they will also start offering cheaper packages that include advertising. This is the case with Disney + which also faced a decline in the number of subscribers.

SL