🍿 2022-11-03 01:39:00 – Paris/France.
Netflix has announced that starting this Thursday it will launch its new Streaming funded by advertising. The company revealed a few successful contracts with big-name advertisers for its launch and hired a team of advertising industry professionals to successfully develop this new branch of its business.
This launch, made public after the first quarterly report of the year, comes a month before Disney+ launched a similar plan. The service became known as “Basic with Ads”.
As we have commented on several occasions, this announcement stems from an emerging strategy aimed at trying to reach a greater number of subscribers after a significant decline in audiences resulting, among other things, from increased competition.
A month ago, Netflix announced that this ad-supported plan would cost $6,99 in the United States and would include four to five minutes of ads per hour of content, and I hope audiences migrating to these plans will be composed of low-income or older current subscriber families. public.
One of Netflix's biggest challenges has been negotiating with content creators to insert advertising during broadcasts. According to a WSJ article by Suzanne Vranica, Joe Flint and Sarah Krouse, some of the studios that Netflix has not finalized revised licensing deals with include Walt Disney Co., Comcast Corp.'s CMCSA, NBCUniversal, Sony Pictures Television, Warner Bros. Discovery Inc. and Lions Gate Entertainment Corp.
According to the same source, while studios like Disney don't create original content for Netflix, they do offer reruns of popular shows like "Grey's Anatomy" and "How to Get Away with Murder." On the other hand, NBCUniversal is a big provider of library and original content for Netflix, including the drama “You”.
Talks are also continuing with Sony Pictures Television, which produces "The Crown" and "Cobra Kai" and sells its theatrical films and "Breaking Bad" reruns to the broadcaster.
Originally, and perhaps unofficially, Netflix announced ad rates of $65 for a thousand viewers, but it's likely that several of the big advertisers who agreed to try out this new plan negotiated rates so significant, as today's advertisers have become more demanding. and effective in terms of advertising investments from the wide range of options.
It is exciting to see how a giant of this size reinvents itself and is willing to share the risk with all involved in order to get the company through a chaotic year.
SOURCE: Reviews News
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