Netflix has found a solution to rising costs by introducing a new ad-supported basic package. This ad-supported basic package has initially been made available in some countries and seems to be doing well so far. However, no user wants to watch ads on a service they’re paying for, and this has prompted platforms to come up with new strategies.
New Advertising Strategy from Netflix
In traditional television media, this situation is quite common. Especially when we look back at the 90s and 2000s, during the time when everyone was watching TV, ad breaks were shorter and more effective. Even children used to watch commercials. This tradition continued and became a norm in today’s television industry. However, for a platform like Netflix that started as an ad-free service and has accustomed its users to this experience, things are much more challenging.
Netflix aims to solve this problem with a new strategy. The brand plans to show users ads that are in line with the content they are watching and that don’t feel out of place. This can be seen as an attempt to show ads without making users feel like they are watching ads too much.
Warner Bros. Discovery and Netflix are reportedly in talks for a licensing agreement, potentially bringing HBO Max content to Netflix.
To illustrate the situation better, let’s assume you are watching content related to cars. The ads that will be shown to you, which will help reduce Netflix’s costs, will also be related to car-related products, such as new tires, motor oil, and so on. These ads will be shown back-to-back, just like in traditional television slots. However, since they have the same content as what you are already watching, it won’t bother you. At least, that’s what Netflix is thinking.
So, what do you think about this new advertising strategy? Don’t forget to share your thoughts in the comments section.
