During the Cannes Lions advertising conference, COO of Netflix confirmed that they are planning to add Ads. The executive discussed a number of challenges affecting the company’s future. He was there to receive the Entertainment Person of the Year honour.

The CEO also spoke upon the subject earlier in the year. According to Reed Hastings, who runs Netflix. He said “those who have followed me know that I have been against the complexity of advertising and a great fan of the simplicity of membership.“

Ted Sarandos On Planning To Add Ads

Ted talked about the existence of Ads on Netflix
Ted Sarandos In Cannes Lion

The executive said in April they would provide users with a less expensive, commercial level after suffering losses in membership counts as well as its stock. To discuss prospective ad-sales and marketing alliances, it made contact with Google, NBCUniversal, and Roku.

In regards to partnerships for advertisements, Sarandos would not comment, but he did acknowledge that Netflix had begun talks with “all of the companies“. It is noticed that they all had  conflicting responses. Allowing customers who want a lower price and are accepting of advertising to provide what they want makes good sense, he continued.

What Is The Plan Ahead?

Plans ahead for the viewers
Netflix logo

As they anticipated, the popularity of Netflix shows is soaring globally, and viewing is growing linearly. The vast number of homes with joint accounts, when paired with rivalry, create barriers to revenue development.

This scenario was hidden by the significant COVID spike in streaming. They plan to keep operating margin at roughly 20% as they try to accelerate their  revenue growth.

Peoples Reaction Is Poles Apart To What CEO Has In Mind

viewers have a completely opposite reaction.
Browsing on Netflix

People do not seem too happy with this decision, of bringing advertisements on Netflix. The reaction is totally fair considering that viewers pay a good amount of money so that they can enjoy the show ad free.

Even though the CEO says it is more about partnership, it does not seem to fit with the viewers.

 

https://twitter.com/whatsmokk/status/1538928972561625090?s=21&t=3PR3_U4-ocZwwVbIjB1jGA
https://twitter.com/raelexxyt/status/1539125825924386816?s=21&t=3PR3_U4-ocZwwVbIjB1jGA
https://twitter.com/eh_h_hh/status/1539113483987570688?s=21&t=3PR3_U4-ocZwwVbIjB1jGA
https://twitter.com/bobgx2/status/1539261249682395137?s=21&t=3PR3_U4-ocZwwVbIjB1jGA

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