Netflix and the advertising bet

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Advertising on Netflix? This is what the leader in video on demand by subscription will offer, with a new offer, cheaper, at 5.99 euros per month, announced the company Thursday, October 13. Until now, before seeing an episode of a series or a film, the red “N” of the platform was displayed and its sound signature resounded. From November 3, subscribers to this formula will have a thirty-second advertising spot before their programme. Their episode can then be interrupted by other shorter advertisements, of fifteen seconds.

This package, called “Essentiel avec pub” is 33% cheaper than “Essentiel”, the entry-level formula: at 8.99 euros per month, it allows you to watch Netflix on a single screen. The version with advertising is broadcast in high definition “HD”, but does not allow downloading of programs for offline viewing, and some works are missing, for copyright reasons (85% of the Netflix catalog is present, of which all flagship series, ensures the platform).

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This announcement comes as the company with 220 million subscribers announced for the first time that it had lost customers: 200,000 in the first quarter and one million in the second. In the spring, its management, historically hostile to advertising deemed unpleasant on traditional television channels, began a strategic shift.

Phase de test

The subscription announced this Thursday aims to win back subscribers, among people who find the other formulas too expensive and are not bothered by the advertisements, knowing that the volume of advertising will not exceed four to five minutes per hour, assures Netflix. Young people are part of the target audience for this new formula, which is being launched in the test phase in twelve countries: United States, Canada, Mexico, Germany, United Kingdom, France, Spain, Italy, Australia, Japan, Brazil and Korea. from South.

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On the advertiser side, Netflix’s conversion is seen as a ” good news “, explains their lobby, the Union des Marques, via its general manager Jean-Luc Chetrit. The platform is positioned as a “premium” medium: compared to social networks and digital advertising media, Netflix offers high-quality content and a format similar to television spots, more sophisticated than banners. To stand out from traditional channels, the service promises international reach and the ability to reach hard-to-reach viewers via TV, with more targeting possibilities. At this stage, Netflix is ​​cautious about the use of data: advertisers will be able to target the age of the viewer, his country and a style of content (romantic series, action, etc.) or even a particular program. For instance : “The French who watch Emily in Paris. »

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