(Newswire.net — May 19, 2022) — Having spent a lot of time in the headlines lately, it has been revealed that Netflix’s ad-free era may soon be coming to an end. It has been speculated that the superior subscription-streaming service is quite open to bringing ads to its platform. Netflix’s CEO says the streaming giant is now open to launching a lower-cost, ad-supported plan, which comes after the video streaming platform recently disclosed a 200,000-subscriber drop towards the end of last year – its first user decline in over a decade.
So, with all this news coming to light in the media, it leaves us wondering how Netflix succumbing to ads could change the landscape of TV advertising. Here’s our take.
Is Netflix bringing ads to its platform?
Netflix had been publicly discussing charging extra for those who share their account logins, and, soon after these claims were released, the company had its say on ad-supported streaming, stating they would work it out over the next year or two. However, according to news sources, the service’s executives are now hoping to deploy the ad tier somewhere towards the end of this year. It is now reported that Netflix has very recently accelerated its plans to launch a reduced-priced ad-supported subscription tier plan.
What this means for the TV advertising landscape
If Netflix decides to follow through with its plans to introduce ad-supported streaming onto its platform, this will benefit both advertisers and them hugely – and it will also have advantages for streamers. Netflix has already massively impacted the TV landscape and the way they watch content, but with the streaming company now looking to introduce ads to its platform, this could change TV advertising for good – perhaps through developing advanced TV targeting for consumers.
Advertisers are ecstatic with the streaming giant’s plans and have faith in knowing that we’ve seen from advertising-based VOD and other streaming services that many users are prepared to watch ads in return for content. But, even if Netflix were to deploy ad-based streaming, would it change the TV advertising environment that much? After all, services like Disney+, HBO Max, and Discovery+ have already made moves or plans to develop ad-supported streaming.
Netflix can change TV advertising
Netflix has already changed the way we access and watch TV as we know it, so it is only logical that they have an opportunity to change the advertising landscape as well. They could take the idea of showing ads to consumers and make it a completely immersive and exciting experience, rather than just interrupting users and blatantly flashing them with content that will make them a lot of money.
For Netflix to consider incorporating ads, it must mean they’re on to something big. One of the best things about Netflix is that there are no ads to watch, so why would consumers want them now? Well, subscriber totals have already dropped so why not take a chance? Ads mean money – it’s that simple. Netflix and advertisers will love this. But this can benefit users too, especially with the potential for cheaper monthly subscriptions. If this movie shows anything, it’s that all streaming services must be prepared to support ads to survive in an increasingly competitive industry.