The data shows it: the future of ‘streaming’ goes through ads

When Netflix announced its plan with ads, many threw their hands up. The reality: people ask for it.

Netflix announced a few months ago its intention to offer a cheaper subscription plan in exchange for ads. After years of crusade to get rid of the eternal advertising of traditional television, the queen of ‘streaming’ turned to her again. Many raised their hands to their heads, but now that several months have passed since its arrival on the market, the data says the opposite: the future is in the announcements.

The OTT Barometer of the new GECA Exclusive Report shows that 50.6% of users believe that the entry of advertising on the platforms is something positive if it is accompanied by a reduction in the monthly fee. But there is something more interesting: 8.6% of Netflix users have the Basic Plan with ads, of which half were not customers and 6.5% had the shared key. Netflix is ​​winning the battle and is doing exactly what it wanted: growing its number of subscribers.

The main reason the company decided to implement this model was to grow in terms of subscriptions. The first quarter of 2022 was negative for Netflix, since instead of growing the two and a half million users it expected, it lost 200,000.

The unexpected resignation of the man who invented Netflix after 25 years at the helm: Reed Hastings leaves the front line to move into the background

He quickly got down to work and announced the Plan with announcements that would see the light of day just 6 months later, in October of that same year. “Those who have followed Netflix know that I’ve been against the complexity of advertising and I’m a big fan of the simplicity of subscription,” then-CEO Reed Hastings said during the company’s first-quarter earnings presentation. company, “But as much as I’m a fan of that, I’m more of a fan of consumer choice. And allowing consumers who would like a lower price and tolerate advertising to get what they want makes a lot of sense“.

Hastings thinks what many subscribers and the latest barometer proves it. Netflix will follow Disney+, another streaming platform that is committed to advertising. In the United States they have already incorporated the basic plan -7.99 dollars a month- in exchange for advertisements. It is expected to arrive in Spain throughout this year.

While your first step has been a success – or is on the way to it – will your second one be too?

Your Next Step: Ban Account Sharing

Now yes: Netflix will prevent you from sharing an account at the beginning of 2023

This is where things start to get tricky. In Netflix’s plan to increase subscribers there is also the ban on sharing accounts, which has been on the table for a long time and which, as recently announced, is scheduled to be implemented in early 2023. While the announcements have been well received, it remains to be seen what the consequences of this measure are. We don’t know yet how this will work, but you may have to pay extra to let other people be invited to your account.