Los Gatos (USA) November 2 (Reuters) – US streaming platform Netflix is making its cheaper subscriptions more attractive with advertising. It wants to secure more money from advertising, which has so far been going to traditional TV channels. For example, users with advertising subscriptions will soon be able to download movies and series for later and the picture will be sharper thanks to Full HD resolution. The company, which also offers its services in the Czech Republic, said on its website on Wednesday.
A year after its launch, the ad-supported subscription, which is not yet available in the Czech Republic, has attracted 15 million customers. In total, Netflix now has over 247 million subscribers.
Netflix ad Model
Another new feature is that customers with an advertising subscription will in future be able to use the service on two devices simultaneously. In the new ad-supported format, it will be possible to watch the fourth episode directly after watching three episodes of a series in sequence without commercials.
According to earlier Netflix data, approximately 30 percent of new customers have opted for an ad-supported subscription in countries where it is available. This development goes hand in hand with the limitation of sharing accounts outside a single household.
On the other hand, Netflix also wants to accommodate advertisers. Among other things, they will be able to post ten, twenty and sixty-second spots in addition to the current fifteen and thirty-second clips. Advertisers will also be able to better measure the success of their ad campaigns – and, following the model proven in television, sponsor shows.
TV Industry Shift
The popularity of streaming services is increasing pressure on the business model of traditional TV channels. In Netflix’s home market, viewers are also increasingly cancelling expensive cable contracts with many TV channels, DPA reported.
Walt Disney CEO Robert Iger believes his group’s future without classic TV stations such as ABC is likely. They were once a reliable source of cash for the company, but now that business is shrinking – and faster than Iger expected by his own admission.