The controversies around Netflix’s economic plan based on advertising are constant, but the company could take a step in favor of users, since original premiere movies and children’s programming would be free of ads, according to a report by Bloomberg .
This information reached the media through people inside the company who asked not to be identified, because the company is working on the details; however, they highlighted plans for the original films to remain ad-free at least during their releases.
The company intends to introduce the new model from the beginning of next year, so its advertising business is in early stages of development and plans could still change.
This is one of the most relevant strategies for the company, which during the first six months of 2022 has lost more than a million subscribers, in addition to the fact that its share price has fallen by nearly 65% since November of last year.
According to analysts, the ad strategy could generate between 3,000 and 4,000 million dollars annually in advertising sales, which would make Netflix one of the most relevant companies in the sector of online video advertising, along with YouTube.
Plus, it’s an incentive for filmmakers to stay interested in creating content for the platform without having their movies interrupted by ads in the middle of stories.
Although the platform’s users have decreased, it still has titles that can attract a large number of potential users, such as Stranger Things or the Squid Game.
This decision may be strategic for Netflix in its goal of improving the position of the company, since not all the content found on the current version of the platform will be available in the version with ads, according to what was said by the co-executive director, Ted Sarandos.
And it is that many of the programs that it currently owns do not have the rights to be offered with advertising and, in case of wanting to include such advertisements, the Los Gatos, California company would have to pay even more.
Also, the company may not allow ad-supported plan content to be downloaded for offline playback, which was not well received by potential users.
Children’s content, a problem for video advertising
Netflix isn’t the only streaming company thinking of introducing ads to its platform. Disney + is also considering this modality, but both face a problem with children’s programming and privacy towards this sector.
It should be remembered that a few years ago, Google and YouTube got involved in a controversy with the Federal Trade Commission of the United States, which argued that children’s YouTube without parental consent and had to pay 170 million dollars for violating the privacy laws towards children.
