Streaming platform Netflix is making its intentions about advertising clear, as its co-CEO Ted Sarandos has been meeting with representatives from other companies such as Google during the Cannes Lions Festival in an attempt to attract more investors.
Speaking to the crowd who attended a Cannes Lions event yesterday, during which he was presented with the award of 2022 Entertainment Person of the Year, that Netflix is now officially an open platform for all advertisers and marketers who are looking to promote their products. However, he did not comment on any questions regarding potential deals.
The streaming giant had previously announced their intentions to create a less-pricey option for subscribers that comes with ads during their regular programs (kind of like what your TV programs where like, for those that still remember.)
Netflix reached that decision after their previous quarterly report saw them lose around 200,000 subscribers (they actually lost 700,000 but gained an extra 500,000.) While this significant drop was mainly attributed to the ongoing war in Ukraine, with Netflix banning its services in Russia as a result, the downfall trend was still quite noticeable.
Netflix have also announced a number of other initiatives to counteract the situation: people will no longer be able to share their accounts with others, as the company has flagged that they’re missing out on a “whole other market” of viewers who use the service without having to pay a cent.
The company first announced their plans to launch the ad-supported subscription option back in April, but have yet to reveal when it will actually become available, as Sarandos continues his talks with potential partners. Reports state that apart from Google, Netflix have also been in talk with Comcast (owners of NBCUniversal) and Roku, among others.
What the outcome of these negotiations will be and when Netflix will launch their highly talked-about ad-based service remains to be seen.
