A low-cost subscription to Netflix with ads could have a huge impact on the streaming industry

This article has been translated from our Spanish edition using AI technologies. There may be errors due to this process.

The drop in subscriber numbers was reported last week by Netflix it was surprising, even for the company itself, that it is reconsidering a low-cost version that includes the presence of advertising. While the streaming giant has stayed away from this alternative for years, recent statements by its founder and CEO, Reed Hastings , show that they are considering it today. In last week’s presentation of results, the manager explained: “You know I’ve been against the complexity of advertising and I’m a big fan of the simplicity of subscription, but as much a fan of this as I am. , I’m more of a fan of consumer choice and allowing consumers who want to have a lower price (subscription) and who tolerate advertising to get it. “

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Although Hastings did not mention an exact date for the launch of this new subscription option, he hinted that it could happen next year. The fact that Netflix, still a leader in streaming platforms, is developing a low-cost ad subscription could shock the entire streaming industry. Ash Gangwar, CEO of Media Buying Company The Trade Desk , he told Yahoo! Finance: “It’s huge, not only because of what it means for Netflix, but also because of the impact it will have on the entire television ecosystem. (The decision) will force a lot of changes.

And no wonder. There are more and more streaming platforms on the market and users have become selective, as for many it is not feasible to maintain the subscription of six or seven services simultaneously. Cheaper subscription options may cause you to reconsider this option. Both HBO Max and Hulu are already offering low-cost subscriptions in the U.S., and a few weeks ago Disney + announced that they were already working on a low-cost subscription that could be available in the U.S. by the end of 2022 and internationally sometime. . 2023.

In his statement, Gangwar explains that because its service is currently free of advertising and independent of advertising revenue, Netflix could experience and completely change the advertising ecosystem for the better: “Netflix can say,” How can I create the best experience? for the consumer. ? ‘ If it’s a 30-second ad, great. But if not, they can be creative … Netflix could force streaming services to do things better than they do today. “

Regardless of the subscription modalities they develop, streaming platforms must remember that, in the end, what will keep a user as a subscriber for a long time is the quality of the content . Offering a subscription with ads helps solve the problem, but that’s not the whole story. In an effort to compete, streaming platforms are offering more and more content, not necessarily the best quality.

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