available shows
Netflix remains the most popular video streaming service in the world, but it is not immune to market dynamics and consumer whims. The company posted its very first drop in subscribers in the decade that it worked, and it even lost up to 970,000 in the second quarter of 2022 (via CNN). The streaming giant is however convinced that it already has a successful strategy in progress to remedy it: he confirmed that the plans to create practical in many services based on the subscription.
That said, it is not because you see advertisements and you pay a subscription does not mean that you will have access to everything that Netflix has to offer, as a recent report reveals. The streaming services supported by advertising are not new and, to a certain extent, Netflix is the aberrant value here. Many video and music streaming services offer a free level and try to recover losses through advertisements. In the case of Netflix, however, that the level responsible for advertising may not be free, but carry significantly lower monthly subscription fees.
Netflix seems to be quite determined to get there and wants to launch this level before the end of the year. It is far from ready, however, and the company admits that it is still in the very early stages. This apparently implies a legal labyrinth of the granting of content licenses and to speak with studios to find out if their content can be shown on this level supported by advertising.
Netflix negotiations open the way to a cheaper plan
The Wall Street Journal reports that the streaming giant renegocious with major studios like Warner Bros., Universal and Sony to put their content on this next subscription plan. Such negotiations are normal in the entertainment industry, and Netflix had to do the same when he wanted to let subscribers download emissions.
This feature did not come without cost, of course, and Netflix had to add 10% to 15% in addition to the original agreements. Studios could require an additional premium of 15% to 30% to allow their emissions to broadcast with announcements, a premium that will certainly affect the way Netflix will be the price of this level. There are not yet difficult figures at this stage, and there are still gray legal areas concerning the capacity of Netflix to display advertisements under existing agreements in the first place, according to experts who spoke with the WSJ.
More importantly, however, these negotiations mean that all third -party shows on Netflix will not be accessible to those of the level brought by advertising. Certain studios could prevent the specific content of the dissemination of advertisements with announcements, as they have already dealt with other services funded on advertising. In turn, this could be a huge means of deterrence for people who register at the cheaper but (potentially) more limited levels, putting Netflix back to the box on his number of subscribers. On the other hand, a more limited selection could also serve as a teaser which will allow subscribers to switch to a full plan. It is still too early to say how it will happen, and Netflix will undoubtedly do hard to obtain high -level programs on the level funded by advertising to make it more attractive.
