The new offer of Netflix is detailed in dropper. Due early next year, it should offer ads to offset a reduced subscription price, in addition to existing offers. After announcing that its catalog would be incomplete through this offer, it is now in the programs broadcast without ads that Netflix gives details.
$3-4 billion in ad revenue
According to Bloomberg sources, content aimed at children should not include advertising. And this, whether it is original programs produced by Netflix or movies and series from other studios.
In the United States, the regulations surrounding young audiences’ exposure to advertising are particularly complex. In 2019, Google and YouTube paid $170 million to end lawsuits that accused them of illegally collecting children’s personal data without parental consent.
However, it is through personal data that the streaming pioneer will be able to better target the people who will see an ad on their screen. It is also this targeting process that should allow Netflix to sell its most expensive advertising while streaming less than on TV. The sale of advertising space on Netflix – for which Microsoft will be responsible – could reach between 3,000 and 4,000 million dollars each year.
Ad-free Netflix original movies for a while
Developer Steve Moser found settings in the iPhone app’s code related to user preferences for targeted ads. Analysis of this code had also revealed that the functionality to download content would be absent from the new offering. Unless the situation changes, it will not be possible to watch movies or series offline with this entry-level subscription.
Other advertiser-private shows will be Netflix original movies. They must be offered without advertising, but only during their launch phase. After this period, whose duration is not specified, advertisements may be included.
For Netflix, the challenge is also to reassure the big names in cinema who do not want to see their works interspersed. Leaving an open door for ads placed before and after the content.
Confirmed in June by the company, this new subscription to Netflix should compensate for a difficult start to the year. With over a million subscribers lost, the video streaming service saw its share price fall compared to November 2021.
Source: BFM TV
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