Netflix's Ads Streaming Strategy

Monthly ads-supported subscription to Netflix will be available starting from November 2022. The Ads tier subscription will be $6.99 per month. That is almost 55% lower monthly price in comparison with Standard subscription. Although the monthly cost is lower for consumers, the newest tier comes with hidden price tags. Ad timings are unpredictable, what interrupts the user experience. The video content for ads is similar to what other streaming services offer. But the same issue is at hand – when will this show up in a user’s watching experience on Netflix? The titles available on the Basic with Ads tier are very random and don't seem to have any pattern. This shouldn't be a surprise to users, as Netflix announced this change back in July. I think that Netflix's strategy is to get new users to subscribe to the service, or get previous subscribers to come back, by offering a Basic level price. In 2021, Morning Consult did a poll with consumers about their experience with streaming service ads. Brands spent over $400 million on ads on Hulu in 2021 alone. Netflix'll be bringing out an advertising platform next year, which'll be open to bigger ad companies. They should keep an eye on user engagement though, so they can make any changes needed to keep people interested and subscribing. If streaming services don't improve the way users watch content, then people will be less likely to engage with the ads.

(source: https://www.searchenginejournal.com/netflix-ads/470664/)