Netflix has been planning to add commercials to the streaming service for some time, with people sharing mixed views. But now, the Netflix CEO has confirmed that ads are coming to the streaming service.
And the CEO has explained exactly how they will work on the platform.
Scroll on for all the latest…
Now, over the last few years, we’ve taken full advantage of the streaming service’s infamous selection of movies, TV shows, and documentaries.
I mean, who wouldn’t?
It really helped us all get through lockdown.
The days of struggling to stay entertained are over – Netflix holds the potential of keeping you occupied for weeks on end.
The streaming site truly is the best of the best…
At the click of a button, you can instantly stream thousands of movies and TV shows.
As soon as you’ve finished one box set, it’s on to the next…
And there’s nothing better than getting cozy in your own bed and flicking through the best of what Netflix has to offer, is there?
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After a long day’s work, getting back home and sticking your favorite show on is what we all dream about…
It is pretty much all we’ve been doing over winter, and we wouldn’t have it any other way.
However…
For those users who lend out their password to friends or other family members, the price of their subscription could go up.
It’s all thanks to the new Netflix feature that is being tested to stop password sharing between households.
Yikes!
Netflix announced their new test earlier this year to ensure users aren’t sharing their passwords…
Declaring that you could potentially be asked to pay an extra fee to allow others to access your account.
Chengyi Long, director of product innovation at Netflix, said: “While [separate profiles and multiple streams] have been hugely popular, they have also created some confusion about when and how Netflix can be shared.”
“As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”
They added: “for the last year we’ve been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more.”
The statement said that the new feature will be tested on “members in Chile, Costa Rica, and Peru.”
After thousands of users voiced their disapproval of the move, Netflix has come up with another option for subscribers…
Commercials.
That’s right, co-CEO Reed Hastings recently announced plans to offer a discounted Netflix subscription to those willing to watch ads.
As per The Hollywood Reporter, he was previously against the move, and was instead a “big fan of the simplicity of subscription.”
But after subscriptions have recently plummeted by 200,000, they came up with another way to keep costs down.
Adding: “As much as I am a fan of that, I am a bigger fan of consumer choice. And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense,” he said.
Hastings said: “Think of us as quite open to offering even lower prices with advertising as a consumer choice.”
Well, now, it looks like it is official.
Because the Netflix CEO has now announced that ads will be coming to the streaming service.
And it’s started a lot of controversies…
“Ads coming to Netflix, truly a sign of end times,” one person wrote on Twitter.
“The whole point of having Netflix was to get away from ads lol…. WHO is in charge of their marketing because this ain’t it…” said another angry user.
It seems as though the decision has really gotten under the skin of many…
“Netflix is adding ads?? peace out I’m done,” somebody else voiced.
But, there is hope for the giant because some people weren’t all that bothered.
“See every c*** is freaking out because Netflix is thinking about having ads. It’s either they incorporate ads, or they put their prices up. This TikTok generation with a 7-second attention span can’t even watch an ad or two,” somebody else wrote.
“People saying Netflix putting ads on their lower tier will make the last of people subbed leave. Wrong. YouTube did it and people stayed. Twitch put more ads on people stayed. TV has ads and people still watch,” another voiced.
So, what’s going to change?
Well, as we know, Netflix has been wanting to introduce ads to the platform and make the subscription rates cheaper, too.
And according to Ted Sarandos, the Netflix CEO, the company has already started talking to potential advertisers, as reported by UNILAD.
Sarandos confirmed the information at the Cannes Lions advertising festival.
“We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” the CEO said.
“We’re adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads,'” he added.
He’s also explained how the ads will work, too.
“We’ve gotten through experiences where the market disconnects from our core business and you have to prove the thesis still works and is going to work long-term.
“There’s a lot of uncertainty in the world today, and if they get anything that rocks the foundation of the narrative, they get nervous,” he said, as per VT.
It’s not been easy for Netflix lately, that’s for sure.
In fact, last quarter, at the beginning of 2022, the streaming giant lost 20,000 subscribers. Ouch.
And in an attempt to turn it back around…
It looks like ads are the way to go.
What do you think?