Weaker financial results, accompanied by the loss of two hundred thousand subscribers, led Netflix to introduce a cheaper tariff, following the example of competitors, where watching movies and series will be interrupted by advertising. The novelty should arrive in the autumn.
Netflix co-director Ten Sarandos spoke about it again at the Cannes Lions International Creativity Festival. “We left a large group of people lying down saying to themselves: ‚Netflix is too expensive, but I wouldn’t mind advertising‘. Therefore, we will add a tariff with advertising. And no, advertising will not join existing tariffs,Said Sarandos.
We still do not know the details or the price. According to CNBC and WSJ, however, Netflix is already negotiating with Google, which should help it with the introduction of advertising, because it is, of course, the main source of revenue for it. Robert Kyncl, a Czech who, in the past as Vice President of Netflix, was in charge of content and has been overseeing YouTub’s business for the past 12 years, may also be helping the negotiations.
Insider sources say Netflix is also working with Comcast, America’s largest Internet service provider. At the same time, however, it owns the media conglomerate NBCUniversal, which operates the competitive streaming service Peacock. It introduced a tariff with advertising among the first. Today, all American online video libraries have or are planning to have it. However, there are no such tariffs in the Czech Republic yet.
Netflix is a popular video streaming service. In addition to the movies, series and documentaries he buys, he also produces his own content. There are also many popular Czech films, a large part of foreign production contains Czech subtitles, some titles also have Czech dubbing.