Ads on Netflix? The streaming service isn't ruling it out

Date:
Wed, 09 Mar 2022 14:15:48 +0000

Description:
Netflix CFO Spencer Neumann hasn't ruled out the possibility of introducing
an ad-supported subscription tier

FULL STORY ======================================================================

Netflix bosses havent ruled out the possibility of introducing an advert-supported subscription tier on the streaming service .

Speaking at a recent investor conference, company CFO Spencer Neumann
admitted he could never say never when asked about the idea of introducing
ads on Netflix, though he did clarify that the move is not something in [the brands] plans right now."

The response comes in light of Disneys decision to introduce an ad-supported subscription tier on Disney Plus later this year, in a bid to provide more choice to consumers.

Its not like we [Netflix] have a religion against advertising, to be clear, Neumann told audience members at Morgan Stanleys 2022 Technology, Media & Telecom Conference. But thats not something thats in our plans right now. We have a really nice scalable subscription model, and again, never say never, but its not in our plan.

Its clear, then, that Netflix has no intention of replicating Disneys
strategy any time soon, but Neumanns comments nonetheless run contrary to the streamers long-standing aversion to subscription-based advertising. They also suggest that Netflix executives are threatened or, at the very least, intrigued by the idea of rival platforms profiting from the expanded
business model.

"It's hard for us to ignore that others are doing it, Neumann admitted, but for now it doesn't make sense for us.

Disneys move to begin testing ad-supported content on its streamer follows HBOs introduction of a cheaper, ad-supported subscription tier on HBO Max
last year.

For $9.99 (around 8 / AU$14) per month, subscribers to the more affordable version of the service can access the same library of movies and TV shows as those on the standard tier, albeit without the ability to download content
for offline viewing or stream it in higher quality than 1080p.

Theres been no official word yet on how much Disneys equivalent ad-supported tier might cost, though wed anticipate similar parameters on the content available to subscribers.

Incidentally, it appears Netflix is also facing pressure from investors to develop a lower-cost subscription tier to boost revenue. Reuters reports that the company's rate of acquiring new subscribers has slowed in recent
quarters, with Netflix shares suffering as a result.

So, will Netflix stick to its guns and resist the temptation to introduce an ad-supported subscription tier on its platform? For now, almost certainly
but we expect the allure of more subscribers (and by extension, more revenue) will supersede the companys existing business strategies in a matter of
years.

Still, it's worth clarifying that if indeed Netflix does cave in and follow the crowd on this particular matter, it isn't likely to affect the subscription options already available to customers. These are the best Netflix movies to stream right now



======================================================================
Link to news story: https://www.techradar.com/news/ads-on-netflix-the-streaming-service-isnt-rulin g-it-out/


--- Mystic BBS v1.12 A47 (Linux/64)
* Origin: tqwNet Technology News (1337:1/100)