For its ad-supported offering, Netflix plans to join forces with Google. What could this low-cost formula look like?
Netflix no longer has the wind in its sails. After years of unchallenged reign over the SVOD sector, the Reed Hastings firm is facing some difficulties. For the first time in ten years, it observes a sharp decline in its progress, approximately 200,000 subscribers less for the last quarter.
The firm also expects this trend to be confirmed by the end of the year, with 2 million less on the clock. However, the red N does not let himself be defeated and is already working on a redemption strategy. Aware that the increases in these prices have tied its reputation with viewers, Netflix is preparing to launch a low-cost formula.
We learned a few weeks ago, the firm will also give in to the trend of freemium, or almost. Concretely, Netflix will offer access to its catalog at a reduced price, in exchange for the display of some advertisements.
The streaming service is not the only one since HBO Max and Disney + will also soon take the plunge. Inevitably, this new model is of interest to players in the advertising sector.
Google as Designated Partner
This decision did not fall on deaf ears. Advertisers and companies will undoubtedly take advantage of this opportunity to display their best advertisements before the eyes of millions of Netflix subscribers.
It must be said that such an audience is a godsend, both for Netflix, which will be able to replenish its coffers, and for its future customers. But to make sure to develop the most effective tool possible, the red N will have to forge a few alliances.
According to information from CNBC, the firm is in discussion with Google. The search engine has mastered the art of targeted advertising, this is not surprising.
The American media specifies that nothing has been acted. Especially since the platform still has a few neighborhood surveys to carry out. Netflix executives have reportedly met with NBC Universal and Roku to discuss financial partners.
This could also relate to rumors of a takeover of Roku by Netflix, announced at the beginning of June by Business Insider. One thing is certain, things are moving behind the scenes.
It remains to be seen whether all these strategies will be enough to restore Netflix’s reputation with subscribers. Remember that it will also tighten the screw on the side of account squatters, always with a view to increasing its number of subscribers and outpacing the competition. For the moment, the experiment is far from being a total success.