In recent years, the company, led by Reed Hastings and Ted Sarandos, has become a growing figure in the entertainment world, Over 220 million subscribers worldwide It leads to all major players in the industry (and not only) trying to replicate its strategy.

With the success of some and the bad fate of others, the truth is that the market for live streaming has become very competitive and no longer just gaining subscribers to become a battle for the family budget. With so many services available and the economic situation uncertain, the question becomes less and less about an add-on and more and more about which one to keep. And Netflix has suffered a lot from it, even though it is the largest streaming service.

• 2021: Subscriber growth slowed.

• In two quarters of 2022: The platform lost first-time subscribers.

• In the next quarter: Expect to add about 1 million subscribers.

Subscription methods have gone up in prices, cut spending on new content, but at the end of the day, the company responsible for “The Crown” and “Stranger Things” has come to the conclusion that, so far, it has been rejected: Ad-Based Model It might not be that bad (say the ads, given that the company already product mode in many of its contents).

By allowing ads on the platform, Netflix can not only create an additional revenue channel, but also a way in which subscribers can be charged less. The rationale is that even with a cheaper subscription, with ads, Netflix manages, on average, to generate more revenue per subscriber.

• The name: This new service will be called “Basic with Ads”, it was developed in partnership with Microsoft and will cost $6.99 per month (in the USA).

• Duration: Each ad will last for 15 or 30 seconds and will appear before and during each content, for a total of 4-5 minutes on average for each hour viewed.

• Advertisers: You may choose not to associate with certain types of content, will not be able to appear in films or new children’s content, and will rely on the Nielsen Ratings Service (as of 2023) to analyze the reach and impact of their advertising.

• Users: You will not be able to download series and movies to watch them offline.

No service appointment yet. It is launched in Portugal.

Read more: The An apple She is also working on an ad model for the streaming service.

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