AdvertiseMint

Grow your business with Facebook, Instagram & TikTok advertising. Let's talk 844-236-4686.

  • Home
  • Services
    • Facebook Advertising Agency
    • Advertising Agency for Amazon
    • TikTok Advertising Agency
    • Google Ads Advertising Agency
    • Instagram Advertising Agency
    • Snapchat Advertising Agency
    • LinkedIn Advertising Agency
    • Spotify Advertising Agency
    • Pinterest Advertising Agency
    • YouTube Advertising Agency
  • Pricing
  • Blog
  • About
  • Contact
  • 844-236-4686
  • Get Started
You are here: Home / Marketing / Advertising: The Next Step for Netflix?

February 14, 2019

Advertising: The Next Step for Netflix?

Anna Hubbel, writer at AdvertiseMint, Facebook ads company
John-Mark Smith / Unsplash

Even though Netflix is considered the gold standard of video streaming services, it may be forced to rethink its business model if it wants to survive.

Presently, Netflix runs off of paid subscriptions to offer streaming without ad interruptions. However, customers weren’t thrilled when the service increased its price by 13 to 18 percent at the beginning of the year. In fact, 27 percent of subscribers said they either are considering or planning to cancel their Netflix subscription as a result, but more than half said they are open to an ad-supported option if it meant a lower cost.

Is advertising in Netflix’s future? The rise in streaming competition suggests that it is.

More companies are launching their own streaming services, giving customers more selections. In 2019, AT&T, Disney, and Viacom are slated to release their own streaming services, along with NBCUniversal in 2020. Not only do these services offer competitive pricing, but they may also take away their content currently available on Netflix.

If Netflix wants to keep its non-original content by these major companies, it will have to pay big bucks, but that’s only if the companies are willing to continue allowing their content on the service at all.

Emarketer says Netflix should consider an ad-supported option so it can keep its customers by offering lower subscription costs. According to a 2018 survey, 73 percent of adults who use video streaming services say they watch ad-supported video. Further, 59 percent said ads don’t bother them if they can watch what they want, and 56 percent said they’re okay with ads if it means a lower overall cost.

Image Courtesy of Emarketer

Hulu, as an example, had 40 percent more viewers on its ad-supported service year over year in 2018. Additionally, less than 40 percent of Hulu subscribers pay the extra four dollars for an ad-free experience, which means they don’t mind the ads. Emarketer forecasts Hulu’s ad revenues totaling more than $500 million by 2020.

“Pure subscription services like Netflix will, at some point, have to resort to additional monetization options (i.e., advertising),” Emarketer principal analyst Paul Verna said in the article. “It’s also true that hybrid models will also face upward pricing pressure.”

Written by Anna Hubbel, writer at AdvertiseMint, best Facebook advertising agency

Comments

comments

Article by Anna Hubbel / Marketing

About Anna Hubbel

Anna Hubbel is a contributing writer for AdvertiseMint. Anna writes about trending digital advertising topics, including news stories, how-to guides, and detailed marketing strategies. She works as a freelance writer, having written columns for OnStage Blog, a theater-themed website, as well as other blogs. She also has experience as a videographer, photographer, and web designer. Anna earned her bachelor’s degree in Communication from Saint Vincent College in 2014. She earned a Master of Arts degree in Communication, with a focus on organizational communication, from the College at Brockport in 2019.

Complete Guide to Facebook Targeting

Download our FREE Facebook guide with over 850 ad targeting options.

  • This field is for validation purposes and should be left unchanged.

Speak with an Advertising Specialist

Want to learn more about what advertising platforms are best for growing your business.

Schedule a FREE call with our experts. 

Ad Targeting Infographics

  • Amazon DSP Ad Targeting
  • Facebook Ad Targeting 
  • Hidden Facebook Ad Targeting
  • LinkedIn Ad Targeting
  • Snapchat Ad Targeting
  • Digital Ad Platform Policies
Hear the Audiobook FREE on Audible

Browse by Platform

  • Facebook
  • TikTok
  • Instagram
  • Twitter
  • YouTube
  • LinkedIn
  • Snapchat
  • Pinterest
  • Amazon
  • Google

Popular Articles

(Updated 2021) How to View What Your Facebook Profile Looks Like to Others

How to Make Money on TikTok

New Instagram Sorting Feature Shows Who Appears on Your Feed the Most

12 Ways to Become TikTok Famous

Here’s Where Instagram Keeps All the Posts You Liked

How to Hide Your Facebook Post from a Specific Person

Instagram’s Warning Notification Gives At-Risk Accounts a Second Chance

6 Important Marketing Theories and How to Apply Them on Social Media Campaigns

35 Banned and Restricted Products You Can’t Advertise on Facebook

The Best Time to Post on TikTok, According to Data

AdvertiseMint

  • Home
  • About
  • Careers
  • Blog
  • Definitions
  • Programs
  • FAQ
  • Press
  • Phishing Scam
  • Sitemap

NEWSLETTER

Get expert insights and latest news in digital advertising every week

NEWSLETTER

Certifications



advertisemint google partner     

7080 Hollywood Blvd, Hollywood, CA 90028       |       844-236-4686

Facebook Advertising | Instagram Advertising | Google Advertising | Amazon Advertising | Pinterest Advertising | Tiktok Advertising
Terms and Conditions | Privacy Policy | Cookie Policy
© 2021 AdvertiseMint All Rights Reserved.