The streaming world will never be the same again. Although the step does not come as a surprise, Netflix has finally made it official: the days without advertising are over. But the most important question still remains open.
Netflix boss unpacks: advertising will come
Netflix will show ads. Co-CEO Ted Sarandos made it official on Thursday at Cannes Lions 2022, one of the most well-known gatherings in advertising. The Netflix boss’s presence there alone is telling, but Sarandos made it even clearer:
We didn’t have a large segment of customers on the table, which are people who say, “Hey, Netflix is too expensive for me and I don’t have a problem with ads.” We’re introducing an advertising tier. We’re not adding ads to Netflix as you know it today. We’re launching an ad tier for people who say, “Hey, I want a lower price and I’ll watch ads.” (Source: The Hollywood Reporter)
Anyone who opts for the advertising subscription will be able to relax in the bathroom and relieve themselves while the advertising is running – in the knowledge that Netflix will give you a discount on the price. Just like with linear television.
What we don’t know yet: when and at what price will this new subscription level start? Netflix should also use the time at the advertising industry meeting to open up advertisers. So the plans are still in the early stages. It is quite possible that the advertising subscription will not start in Germany, but initially in the USA or other markets.
Fresh in June on Netflix:
No need to worry for Netflix customers: Prices won’t go up — for now
At least one good thing emerges from Sarandos’ announcement: Netflix apparently doesn’t want to take the cheapest subscription price so far, introduce advertising there and then simply raise the prices for all previous offers. Customers will probably be spared this step – a good decision.
Nevertheless, German subscribers are not safe from rising prices. Account sharing, which has been tolerated for years, should soon be ended – or just cost more. A look at Kenya also shows that Netflix is flexible with its prices: it has been offering a free version with limited content for a year.