Netflix is betting on advertising

From November 3, the leader of video on demand by subscription will offer a cheaper formula with advertising, for 5.99 euros per month.

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advertising on Netflix? This is what the leader of video on demand by subscription, with a new, cheaper offer, will offer at 5.99 euros per month, announces the company on Thursday 13 October. Until now, before seeing an episode of series or a film, the red “N” of the platform was displayed and resounded its sound signature. From November 3, subscribers to this formula will have a thirty second advertising spot before their program. Their episode can then be interrupted by other shorter advertisements, fifteen seconds.

This package, called “essential with ad” is 33 % cheaper than “essential”, the entry -level formula: at 8.99 euros per month, it allows Netflix to a single screen. The version with advertising is broadcast in high definition “HD”, but does not allow to download programs to view them offline, and some works are missing, for reasons of rights (85 % of the Netflix catalog is present, all of which Phares, provides the platform).

This announcement comes when the company with 220 million subscribers announced for the first time that it has lost customers: 200,000 in the first quarter and one million in the second. In the spring, his management, historically hostile to an advertisement deemed unpleasant on traditional television channels, has started a strategic inflection.

test phase

The subscription announced this Thursday aims to regain subscribers, among people who find other formulas too expensive and are not embarrassed by the advertisements, knowing that the advertising volume will not exceed four to five minutes per hour, Ensures Netflix. Young people are part of the target audience of this new formula, which is launched in the test phase in twelve countries: United States, Canada, Mexico, Germany, United Kingdom, France, Spain, Italy, Australia, Japan, Brazil and Korea southern.

/Media reports.