Netflix subscribers need to prepare for big changes. Already this year you can expect advertising when streaming.
Netflix is one of the pioneers of the streaming business. While the group recently lost customers for the first time in ten years, while losing users instead, Netflix is still at the top of streaming providers. After different rates for a different number of people and with fluctuating image quality, another option will soon be added. The service is thus reacting to the severe crisis, including the largest stock market loss in the history of the streaming service.
As reported by the New York Times (via IndieWire), Netflix would like late 2022 a Rate with advertising offering. The internal note that provides the information explains that making this change is difficult but necessary:
“Yes, it is fast and ambitious and will require some compromises. All major streaming platforms, aside from Apple, have already or announced an ad-supported service. For good reason, people want cheaper options. “
Netflix cites US platforms Hulu and HBO Max as examples of the success streaming services can have with advertising, but it should still be possible to enjoy Netflix ad-free. You can also enjoy these Netflix highlights:
Netflix wants to take action against account sharing
Netflix CEO Reed Hastings announced a few weeks ago that an ad rate is expected to arrive (via Deadline). At that time it was still said that it only had to be ready in a year or two:
“One way to increase the price range is to advertise on low-end rates and lower prices with advertising. Anyone who follows Netflix knows I’m against the complexity of advertising and a huge fan of the simplicity of subscriptions. But as much as I am a fan of it, I’m an even bigger fan of consumer choice. Giving consumers who want a lower price and are ad tolerant what they want makes a lot of sense. So that’s something we want to watch and explore in the next year or two. “
Netflix also wants to crack down on account sharing outside the home, as the company is losing a large number of paying users. However, sharing shouldn’t be prohibited, but rather be associated with additional costs, as stated in a statement (via The Hollywood Reporter):
“There is a broad spectrum of use when it comes to home sharing, from heavy viewing to occasional viewing. So while we won’t be able to monetize this right away, we believe it’s a short to medium term option.”
This has already been tested in Chile, Costa Rica and Peru. Sharing there costs around $ 3. This change will roll out faster in other markets as well, so German users will likely have to contend with it in the last three months of this year as well.
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