The introduction of ads is advocated as a way out for the platform to deal with the loss of subscribers in recent months
The entry of ads on Netflix is getting closer and closer. According to information from Variety It’s from The Wall Street Journalthe subscription model with the presence of advertising and the lowest cost is expected to hit the market on November 1st.
The introduction of advertisements is advocated as a way out for the platform to deal with the loss of subscribers in recent months. In the first half of this year, around 1.2 million users canceled the company’s services. Among the reasons, the increased competition in the streaming market and the more challenging macroeconomic scenario.
According to the publications, the United States, Canada, United Kingdom, France and Germany should be the first countries to have the new modality.
In June, when announcing the financial results of the second quarter, Netflix had informed that the new model would be launched in the beginning of 2023. The anticipation now would be a way to face Disney+, which intends to add a similar feature starting on December 8th.
The current request from Netflix and its advertising partner Microsoft to advertisers $65 per CPM (Cost Per Thousand), according to Variety, an investment well above the US$ 20 that the market is used to. It is also speculated that the platform may adopt a ‘Dutch auction’ model, seeking to understand what media buyers are willing to pay, and that it is requesting a minimum investment commitment of US$10 million annually from the agencies.
To advertisers and potential media buyers, Netflix said it expects to have 500,000 subscribers by the end of the year. The price on the new model is being quoted between US$ 7 and US$ 9 in the United States. wanted by Variety, the company preferred not to issue comments.
