Netflix confirmed its intention to include ads on the platform, now officially.
Ted Sarandos, the company’s chief content officer and executive, confirmed during the Cannes Lions Festival of Creativity that the company is in talks to place ads (via comic book).
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“If this becomes so important and if we want to have control over it, maybe we can,” the executive revealed.
Netflix is studying the case. The executive also revealed whether or not streaming should own its ad platform, or have an external entity helping it to execute the idea.
In the United States, Hulu, HBO Max and Disney+ have joined the ads. In addition, the respective streaming platforms have specific plans, and cheaper to subscribers, something discussed internally at Netflix.
What does the owner of Netflix say?
After the sudden drop in subscribers, Netflix has been considering the measure of the platform having ads, generating revolt from those who subscribe. Reed Hastings, CEO of streaming, blames password sharing for slowing revenue growth.
“Our revenue growth has slowed down considerably, as our results and forecasts show,” he said in an open letter earlier this year. “Streaming is conquering the linear, as we predicted, and Netflix titles are very popular around the world.”
“However, our relatively high domestic penetration – including the large number of households who share accounts – combined with competition, is creating headwinds in revenue growth,” he continues.
Even though Hastings is against it, he is open to discussing and offering plans with lower prices but containing ads.
“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,” Hastings said at the time of the novelty. “It’s pretty clear it’s working for Hulu. Disney is doing it, HBO has done it. We have no doubt that it works.”