Selling ads would be a major change for Netflix, but it might just be the key to continued growth.
๐ Background: Netflix is well loved, but it's not immune from what's going on in the world. Inflation, war in Ukraine and strong competition in the streaming industry have all contributed to Netflix losing subscribers for the first time ever.
๐ What happened: As a result, Netflix is now saying it might offer a lower priced version of the service... with ads ๐ฑ .
๐ What else: With TV viewership on the decline, advertisers are flocking to streaming services that do have ads (e.g. 9Now or 7+). And while Netflix has resisted introducing ads for years... now, it recognises it might not have a choice.
๐ก Selling ads would require a major change in approach from Netflix โฉ๏ธ . After spending years attracting subscribers and keeping them happy, Netflix may now need to balance keeping advertisers happy too.
๐ก As the streaming market gets more saturated, an ad-supported tier could be Netflix's best option for growth. And it's good for advertisers too, because they can get in front of younger audiences that don't watch TV.
๐ก As Netflix says, "while hundreds of millions of homes pay for Netflix, well over half of the world's broadband homes don't yet". AKA, this change represents huge growth potential ๐ค.
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