Arriving in France in 2014, Netflix has established itself in our homes by offering a new way to consume content legally and unlimited in exchange for a monthly subscription varying according to the number of screens. However, with the appearance of new competitors in the sector, the platform has been losing ground for a few years. To compensate for this loss of subscribers, the CEO of Netflix has justannounce and confirm news that platform regulars feared.
A founding principle of Netflix brushed aside
Indeed, with the arrival of Disney+ on the streaming market and the proliferation of services, Netflix is losing ground. So much so that on April 19, we learned that the streaming service lost 200,000 subscribers in the last quarter.
Originally, Netflix had the principle of not integrating advertising on its platform. As Netflix CEO Reed Hastings recalls, he was always against “the complexity of advertising“privileging”the simplicity of the subscription“. However, given the situation, he believes that Netflix must”give consumers the choice“. And to add that some subscribers”are more tolerant of ads and want to pay less“.
New pricing within one to two years
You can imagine where Hastings is coming from: the arrival of advertising soon on the platform. An announcement that may displease subscribers.
For the CEO, he wants propose new subscription prices which will be less expensive, but which will include advertising. He specifies that this system will its appearance within one or two years without detailing how the ads will be broadcast (before or during the program, subscription price, frequency, etc.). If this announcement looks like a surprise, it really isn’t. This idea has been in the works for a while now..
Besides, this is what Disney+ will launch by the end of the year : a formula integrating advertising with a cheaper subscription.
