Yes, Netflix has officially begun to develop advertising business. Company co-CEO Ted Sarandos recently confirmed that Netflix is ​​planning to implement a more affordable "ad-supported package" to attract users who do not want to pay the minimum $9.99 for the "ad-free package".

Yes, Netflix has officially started to develop advertising business. Company co-CEO Ted Sarandos recently confirmed that Netflix is ​​planning to implement a more affordable "ad-supported package" to attract users who do not want to pay the minimum $9.99 for the "ad-free package". Currently, Netflix is ​​already negotiating with advertising sales partners, although Sarandos has not yet clarified the launch time, specific price and other information of this service, nor has it announced which companies it is currently negotiating with for cooperation. But Netflix had previously informed in an internal memo that the advertising subscription service plans to launch before the end of this year.

Competitors “gloat over misfortune”

During the TV advertising pre-sale week held at Radio City Music Hall in New York City in mid-May, Netflix did not announce the latest progress in its advertising subscription service, while advertising sales executives from other companies as its competitors They all have the mentality of watching the fire from the other side and even taking pleasure in the misfortune.

On the opening day of the TV ad pre-sale week, Linda Yaccarino, chairman of NBCUniversal advertising sales and client cooperation, sarcastically told the media, “Some companies are simply unable to meet the needs of advertisers at the moment. , after all, in the eyes of some companies, advertising seems to be just a means to fix a problem; what's worse, they still believe that advertising can create new revenue."

Obviously, Yacarino was sarcastic about Netflix. And this is just the beginning. During the entire TV advertising pre-sale cycle, various TV networks and media companies in North America have focused on advertising brands - their long-term and firm support for the advertising industry.

For example, Fox Entertainment CEO Charlie Collier declared in a speech recorded for the Fox ad pre-sale: "Recently, I've seen some headlines saying 'Advertising is back,' but I want to ask , When did advertising leave? How come I didn’t know?”

Fox Sports CEO Eric Shanks further “added insult to injury” when he addressed buyers, “Leave you alone, don’t we? Has it become Netflix? But we are different. We have always liked selling pizza, selling mobile phones, and selling insurance.” Obviously, the implication of these words is to ask advertisers: Do you believe that Netflix really likes advertising for these products? Does

advertising service respect users?

Netflix revealed its advertising subscription service plan during its quarterly earnings call in April this year. But surprisingly, the company did not mention the plan in its letter to shareholders, and even co-CEO Reed Hastings did not take the initiative to talk about the plan in an earlier conference call. .

Hastings explained, "Anyone who follows Netflix knows that I have always disliked the complexity of ad-based subscription services, but prefer the simplicity of direct subscription services. Although I support simplicity, I respect it more Consumer choice. Some consumers can tolerate advertising and hope for lower subscription prices. In order to meet their needs, launching advertising services for them is also in line with the trend. "During the TV advertising pre-sale week, TV giants concentrated their firepower. The criticism has made Netflix a whirlpool of public opinion, which is also caused by its own problems and difficulties it faces.

According to the practice of Disney , the late night show host Jimmy Kimmel owned by the company took the lead in making an appearance and acted as the person who criticized the opponent's vital points. He was the first to "fire" in the media interview, "I must admit, watching It feels great to have a platform that is so self-righteous that it has to sell ads. I know everyone loves to watch the American TV series "Bridgerton", but if you are addicted to migraine medication every 4 minutes while watching the show. How many people will continue to watch if an advertisement is interrupted? Think about it, you guys who spend billions of dollars on people at every turn."

With 220 million global subscribers, Netflix is ​​entering the field of advertising sales for the first time. , the advertising plan given was neither mature nor specific. But traditional TV networks in North America still have to happily warn advertisers: You should choose your old friends first, and then look at the newbies.

"Enter" is not simple

Jo Ann Ross, President of Paramount Advertising Sales, said in an interview, "Seeing more and more competitors entering the advertising-based subscription service (AVOD) field, This just proves that we are right - the strategy of integrating Paramount's streaming business with CBS and cable channels is visionary and correct."

Not long ago, the United States. Investment research firm Moffitt Nathanson hosted an industry forum to discuss recent entrants to the advertising market. Rita Ferro, president of Disney's advertising sales department, made no bones about it, "If new players want to open up the situation, I can tell them that things are not that simple."

In fact, this is also the pre-sale week for TV ads Another theme, every traditional TV network and media company has slogans such as "trust" and "long-term partnership" on their lips to demonstrate their long-standing close ties with the advertising world. NBCUniversal CEO Jeff Shell said: "Our company has been committed to developing advertising-supported video business since its inception. Advertising-based video business has always been our core business or pillar business, and Non-minor expansion business.”

These remarks have been recognized and resonated by buyers to some extent. At one of the many events during the TV advertising pre-sale week, a buyer representing a leading company in the food and beverage industry told the media that maintaining a stable and long-term cooperative relationship with traditional TV companies is of great significance to the company. But does this mean advertisers won’t allocate budget to Netflix? When asked about this issue, buyers all said, "Of course we will also choose to cooperate with the most popular streaming media platforms."

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