Netflix has huge audience, with passage of time its growing more. But recently netflix raised its subscription fee, but its audience seem willing to pay higher price with no ads than to watch something which run ads.
But the market runners think that, Netflix may soon be running ads if they want to survive in the market. Where as, Netflix has said it doesn’t intend to ever run traditional ads.
During a panel at IAB’s Digital Content New Fronts many executives from different franchises who were attending, were asked same question about Netflix’s no ads policy.
According to Youtube and google V.P “Well, that’s not what their recruiters say” “They’re going to need growth. Eventually, they’re going to need more growth.” “consumers would be open to ad-supported options if those options are transparent and consumers understand the value exchange.”
“The consumer wants choice and they want something that creates value for them, To the extent that you’ve got this subscription version versus the non-subscription version, consumers will take that tradeoff.”
They highlighted the most happening thing on the market ” the airing of the latest “Game of Thrones” episode. It wouldn’t have worked with ads,” she said. “That piece of content, that type of storytelling couldn’t have happened with ads. The army of the dead are at the wall, and we’re still fighting among the houses.”
Where as other streaming services offer both ad-supported and ad-free options. Hulu, for example, sells its ad-supported service for $5.99 per month. It costs $11.99 per month without ads.
Another panellist said “We grew up in digital, believing we should inject ads everywhere at every moment we could, And that’s why you’ve seen ad blockers and a move to ad-free environments. I think there will become a tipping point where ads come back. Netflix is ad-free now. I can’t imagine a world where Netflix will be ad-free forever. If you look at their content costs, that’s where addressable advertising and new ad formats will come in.”
Netflix has yet not commented, whether these news are true or not, but this will surely change the game for the company and its audiences.
