Netflix was the first to get into streaming, and in a short time it had a lot of users and viewers. It even changed the way people watch TV shows and movies around the world. In fact, Netflix started out by renting DVDs through the mail in the faraway year of 1998. This seems impossible to us now, since we think of Netflix as the type of business that came to change that business form completely.
But the truth is that Netflix has been around long enough to have started out like this and then changed into a streaming service, making it possible for people to rent movies and TV shows right on their own screens.
Now, Netflix is not only one of the most important streaming services, but it also sets the trends for this industry as a whole. For example, it uses an algorithm to suggest content, makes original audiovisual works, and more. But Netflix is going through a time of big changes. During the pandemic, they had 15.8 million users, but in the last year, they’ve lost 200,000 users, and they expect to have 2 million less users in the second quarter of the year.
For the same reason, the California-based company is working on a new advertising model to make up for the loss of more than a million subscribers so far this year, which, as expected, doesn’t please many people. So far, this is what we know.
- Ted Sarandos, CEO and Director of Content for Netflix, said at the Cannes Lions International Festival of Creativity that the company is working on a new rate to attract subscribers who want to pay less for the same content. That is, Netflix with ads will cost less than Netflix without ads.
- This plan will be available in 2023, but it won’t be required.
- In the plan with ads, there will likely be some content that isn’t available because of agreements with distributors. Not all distributors are willing to have ads interrupt their offer, so not all of them will agree to the plan. For example, you might not be able to watch shows like You, Russian Doll, Cobra Kai, or Breaking Bad.
- Also, you won’t be able to download movies or TV shows in the version of Netflix that has ads.
- According to news outlets like Bloomberg, Netflix users won’t be able to skip commercials, and playback controls won’t work during commercial breaks, so you won’t be able to skip the commercial.
- There will not be any advertising in the whole catalog. For example, ads won’t be shown on children’s content to avoid fines or penalties for having a small audience.
- Netflix will also get rid of the ads in its own movies. This could change in the future, though. The reason is that the company thinks it’s important to keep good relationships with directors of these kinds of movies, who don’t like it when commercials interrupt the flow of their movies.
- Yes, or yes, there will be ads in the original shows that have made the platform so popular and made it so much money. That is, Stranger Things, The Bridgertons, The Squid Game, and Ozark will help Netflix even more.
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