The disillusionment should be great for those responsible at Netflix. In the fight for the public’s favour, the streaming provider introduced a pricing model that is favorable for end customers, which is partly financed by advertising in addition to technical and content restrictions. The hope was to attract potential customers who were less willing to pay. The offer has apparently met with little interest so far, the subscription numbers are poor. Netflix apparently even feels compelled to refund money to advertisers.
This is how Netflix works with ads
In the fight for increasing subscription numbers, various streaming providers are currently expanding their offerings. For example, Paramount Plus is expanding into other countries and has been available in Germany since December 8, 2022. Like Netflix, Disney Plus also offers a subscription plan with advertising – you can find all the information about this in this news report.
With the advertising revenue, Netflix is able to significantly reduce the monthly price for end customers. You can subscribe to Netflix for as little as 4.99 euros, but you can only stream it on one device, and this with a maximum resolution of 720p HD. However, it should be noted that not all content is included in the promotional subscription. Unfortunately, you have to do without more than 180 films and series
Ad-supported subscription proves a flop for Netflix
All these disadvantages apparently mean that few people can warm to Netflix’s cheap tariff. According to various sources from the advertising industry, Netflix missed the promised viewer guarantees for booked advertising. Apparently, the number of viewers so far is about 20 percent below the targeted minimum target in order to charge advertisers a corresponding amount.
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Some advertisers have already gotten their money back, others have postponed their marketing campaigns on Netflix into the coming year in the hope of increasing subscription numbers. However, the streaming provider is silent on these failure reports, so there is no official confirmation of these reports. Since Disney Plus also offers an advertising-financed subscription, which, unlike Netflix, does not have any content or technical limitations, it will be interesting to see how the number of viewers develops here.