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Netflix does not rule out having free productions with more ads

The app doesn’t rule out joining the FAST model, which companies like Roku are using.

In the delivery of financial results for the last quarter of 2022, Netflix announced that in its plans it does not rule out the possibility of having free television with advertising, a trend known as FAST.

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ted sarandosco-executive director, assured that the company is “attentive” to what is happening with this modality, which many other platforms are already adapting as an option to get closer to traditional television, but maintaining the essence of streaming and content on demand.

“We are open to all the models that exist today, but this year we have a lot of work ahead of us, both with the distribution of payment and with the launch of advertising and the continuation of the content board that we try to offer to our members. Therefore, we do not lose sight of this segment,” said the manager.

Taking into account the way of operating Netflix, It is normal that this idea is not raised in the short term, since they usually delay their entry into market trends, as happened with the advertising formats.

In addition, as Sarandos comments, at the beginning of 2023 the focus that the company wants is to end the practice of share accounts of some users, something that affects the company’s income and that they intend to solve soon, although for now there is no concrete plan on how they are going to do it.

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The app doesn't rule out joining the FAST model, which companies like Roku are using.
The app doesn’t rule out joining the FAST model, which companies like Roku are using.

ad-supported netflix

At the end of 2022 the cheap plan with advertising of the platform was launched. An option that they enabled to seek more income and allow users to have a subscription at a low cost.

Advertising is a great source of income for the company; in fact, for the first quarter of 2023 they estimate earnings of 8,170 million dollars in this matter. Although for now the economic plan is not giving the expected results.

According to Kantar, Although the company is satisfied with what has been achieved in these first months with the ad-supported subscription, up to now this modality represents 12% of the total subscriber base and Netflix intended to have a broader range.

However, it is important to note that the ad-supported plan is currently only available on United States, United Kingdom, France, Germany, Spain, Italy, Australia, Japan, Korea, Brazil, Canada, and Mexico.

“We wouldn’t go into a business like this if we didn’t believe it could be greater than at least 10% of our revenue and hopefully much more over time in that mix as we grow,” said CFO, Spencer Neumanin the report.

It may interest you: Netflix ends account sharing from 2023

The app doesn't rule out joining the FAST model, which companies like Roku are using.
The app doesn’t rule out joining the FAST model, which companies like Roku are using.

In the report presented, the company evidenced a growth in its user base. Going from 223.09 million global subscribers to 230 million during the last four months of last year, which represents an increase of 7.7 million people.

Although they admitted that “2022 was a hard year”, taking into account that during two quarters the platform lost more than a million users in the world.

“We believe we have a clear path to reaccelerate our revenue growth: continue to improve all aspects of Netflixlaunch paid sharing, and build our ad offering,” the company added in the filed report.

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