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Wednesday, June 29, 2022

Netflix confirms talks to offer ads on its platform

Netflix has confirmed that they are in talks around an ad-supported tier of their service. Deadline reported that CCO Ted Sarandos spoke about the topic at the Cannes Lions advertising conference. While accepting the Entertainment Person of the Year award, the executive spoke about the issues facing the company’s future. However, the idea of ​​whether or not to include ads is not one of them. As Sarandos has made it clear, the sole determination they are making at RED Brand is whether they own the advertising platform or help an outside entity run it. The CCO said, “If it becomes so important [that] We want to take control of that, we can.” So, it’s totally ahead on that front. Users are mixed on the idea, with a lot of people famously thinking that the money they spend on a streaming service It should be used to supplement advertising revenue, but the company absolutely does not believe it.

Earlier this year the CEO also made a comment on the subject. Reed Hastings revealed, “People who have followed Netflix know that I’ve been a big fan of the complexity of advertising and the simplicity of subscriptions.” “But as much as I’m a fan of it, I’m a big fan of consumer choice. And allowing consumers who want low prices, and are ad-tolerant, to do what they want makes a lot of sense. It makes it very clear That’s it working for Hulu. Disney is doing it, HBO did it. We have no doubt it’s in the works.”

In a previous release, Netflix made its intent clear to shareholders after its revenue growth slowed this year. “Our revenue growth has slowed significantly as our results and forecasts show below.” Also in this letter, he told investors that during this period, shortcomings on password-sharing can be attributed.

“Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including accounts sharing a large number of households – combined with competition , revenue growth is creating headwinds,” he continued. “The large COVID boost for streaming obscured the picture until recently. While we work to redouble our revenue growth – through improvements to our service and more effective monetization of multi-household sharing – we will continue to grow our business.” Will keep operating margin at around 20%.”

Will you be using an ad-supported Netflix tier? Tell us below in the comments!

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Reference from comicbook.com

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