5 Euro Flat Rate Subscription: Netflix Has To Reimburse The Advertisement Money

Just a few months ago Netflix announced that they would start to offer a new advertising-supported subscription. For 5 Euros per month subscribers would have access to the same movies and TV series as before, but now with advertisements. The reaction was mixed with many people fearing about the quality of the new service. It turns out that these fears were justified: not only has the number of customers stayed at just above one million, but some of these customers canceled their subscriptions because they found the advertising too intrusive.

The disillusionment ought to be great among those responsible for Netflix.
In to defend the favor of the audience, the streaming supplier presented a rates design that is favorable for end clients, which is partly financed by technical and content limitations.

Netflix

This wanted to draw in prospective clients who show less determination to pay.
So far, the offer has actually clearly barely satisfied with interest, the membership numbers are poor.
Netflix is clearly even required to repay cash to the marketers.

This is how Netflix works with marketing

In the battle for increasing membership numbers, numerous streaming service providers are presently expanding their offer.
For instance, Paramount Plus is broadening to other nations and has been in Germany since December 8, 2022.
Comparable to Netflix, Disney Plus also leads a membership tariff with marketing an-all information on this in this news report.
With the marketing profits, Netflix is possible to significantly reduce the regular monthly rate for end clients.
Netflix can be subscribed to from 4.99 euros, however just stream on one device, and this with a maximum resolution of 720p HD.
It needs to be kept in mind that not all content is consisted of in the marketing subscription.
You have to do without more than 180 films and series

promoted subscription shows to be a flop for Netflix

All of these downsides apparently indicate that just a few people can heat up for the low-cost tariff of Netflix.
According to various sources from the advertising market, Netflix missed out on guaranteed viewer guarantees for booked marketing.
Obviously, the previous variety of spectators is around 20 percent below the targeted minimum objective in order to bill advertising clients a matching quantity.
Some advertisers would have currently got their cash back, postponed others, wishing for increasing membership numbers, their marketing projects on Netflix in the coming year.
The streaming provider is quiet about these failure reports, so there is no main confirmation of these reports.
Given that Disney Plus also uses an advertising-financed subscription, however, in contrast to Netflix, is linked without material and technical limits, it becomes interesting to see how the number of viewers develops here.
Source: Digiday
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