Netflix users will soon be able to see ads when they stream their favorite shows, but why exactly is Netflix adding ads?
Are you a fan of shows like Keep Sweet: Pray and Obey (will open in a new tab) and the Pretense Network (will open in a new tab)or historical dramas like Bridgerton (will open in a new tab)You may have noticed that pop-up ads appear while streaming on Netflix lately.
Beyond the Netflix price hike (will open in a new tab)The American subscription streaming service is considering introducing something that is expected to get on people’s nerves when it includes ads in some of its packages.
Why is Netflix adding ads?
Netflix plans to add ads to all of its streaming packages. in an attempt to increase their income. Netflix CEO Reed Hastings announced that ads could go into effect “in the next year or two” and suggested that this would allow for a “lower price” – despite the fact that the cost of the service to users has risen in recent years.
Netflix is losing subscribers as many people want to save money on Netflix (will open in a new tab) and other subscriptions in accordance with the cost of living (will open in a new tab) a crisis.
A recent earnings report showed that it lost 200,000 subscribers in the first three months of 2022 and is expected to lose another 2 million globally by June.
And the streaming service has already announced plans to limit the number of users who exchange passwords. (will open in a new tab).
Therefore, it is likely that with these upcoming changes, users will either opt for a lower package that will contain ads, or many others may cancel their subscriptions altogether.
Why am I getting ads while watching Netflix?
Subscribers may start to wonder why am I getting ads while watching Netflix? it because the streaming platform has now decided that advertising is an “exciting opportunity” for growth.
Previously, users were allowed to watch videos instantly and without any commercial breaks – unlike the main TV channels or other streaming services.
But this position and format change can annoy some users.
Mr Hastings said: “Those who have followed Netflix know that I was against the complexity of advertising and a big fan of the simplicity of a subscription.
“But as much as I’m a fan of it, I’m more of a fan of consumer choice. And allowing consumers who would like to have a lower price and are tolerant of advertising to get what they want makes a lot of sense.”
The Late Show with Stephen Colbert poked fun at the possible ad introduction, and you can watch an excerpt of it below…
Understandably, customers can pay less for their subscription package if they choose to have ads, similar to the initiatives already taken by Hulu, Disney, and HBO, which offer cheaper ad-funded tiers.
Mr. Hastings stressed that Netflix will NOT use data tracking.
He added: “In terms of revenue potential, the online advertising market has definitely moved on, and now you don’t have to include all the information about people that you are used to. We can keep this out of the way and really focus on our participants while creating this wonderful experience.”
When will Netflix introduce ads?
Netflix can be set to include ads as part of ad-supported, cheaper subscription tiers. by the end of 2022after New York Times (will open in a new tab) reported that company executives told employees in a recent note that they may be available during the last three months of 2022.