New data shows that ads could be a good addition to Netflix. The streaming service is now setting up that capability for subscribers.
By adding ads to one of its subscription forms (ad-free models will continue), the streaming service hopes to bounce back and grow rather than shrink.
Attract more people
“We’ve been ignoring a lot of consumers; people who say, ‘Hey, Netflix is too expensive for me and I don’t mind ads at all,'” Netflix co-CEO Ted Sarandos recently admitted. “We’re adding an ad option. Not to Netflix as you know it now.”
Netflix launched this new model “Within the next two years”† Data now shows that HBO Max is working fine. A survey of 1,600 adults in the United States found that 28 percent of people signed up for HBO Max with ads simply because it was cheaper.
This bodes well for Netflix. For Netflix, that could mean growth is already coming back, as a large portion of HBO Max subscribers want to see it.
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