Netflix Ads Coming Sooner Than Expected?

It looks like Netflix ads will be coming to the streaming platform much earlier than users expected it to happen.

By Chad Langen | Published

netflix ads

The streaming landscape has become quite competitive in the past few years. There was a time when Netflix absolutely dominated the market due to its reasonable price point and huge selection of movies and television shows. These days, however, just about every major studio has its own streaming platform, meaning consumers have more options than ever before. Although Netflix still seems to be the primary choice with subscribers, the streaming giant has admitted that the large selection of competing services has started to affect its marginal growth. In fact, Netflix alerted subscribers earlier this year that they would be raising the rates of their monthly plans, a decision that came with a wave of backlash and a loss of nearly 1 million subscribers. Additionally, it looks like Netflix ads are coming sooner than we thought.

With so many platforms to choose from these days, consumers are beginning to weigh their options. Netflix is now one of the more expensive streaming services currently available and in order to retain subscribers, the company has discussed a Netflix ad-supported plan. Originally thought to be arriving sometime in 2023, ComicBook pointed to a report by Variety that the Netflix ads plan will be arriving on Netflix on November 1st this year.

Before platforms such as Disney+, HBO Max, Peacock, and Paramount+, Netflix had licensing deals with practically every major movie studio and television network on the planet, giving them a rich catalog of content. Now that these companies have their own platforms and many licensing deals have expired, Netflix’s library has shrunk considerably. These days, the network relies heavily on original content, which isn’t cheap. In fact, the streaming giant mentioned the cost of producing its own content as a reason for the price hikes on monthly memberships. With the Netflix ads plan, consumers can get the same premium content from the company without breaking the bank. Additionally, Netflix ads would open up a new channel of revenue for the streamer, something they’ve never tested before.

One of the major problems streaming service providers consistently run into is a surge of subscribers following the launch of a highly anticipated television series or film. Once they are finished watching the show, they cancel their memberships and bounce to the next streaming platform. Before the streaming landscape was so competitive, Netflix never faced this issue. Now, just like every other streaming provider, the company needs to be innovative in order to retain subscribers. Giving consumers the option to sit through Netflix ads for a reduced monthly subscription price is certainly smart on Netflix’s part. Even Disney+ has plans for an ad-supported membership.

After Netflix ads, the next issue the streamer needs to focus on is quality content. Although the company has released some massively successful television shows and movies including Stranger Things, Ozark, The Crown, Squid Game, 6 Underground, Bird Box, and Extraction, the streamer seems to put out mediocre content much more frequently. Regardless, the streaming giant has been around for years and doesn’t look to be going anywhere anytime soon. With streaming becoming more and more competitive, however, these companies need to be creative in how they appeal to consumers if they hope to remain relevant.