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No one escapes it. Advertisements now punctuate the programs of the three main streaming platforms: Netflix, Disney+ and Prime Video. The honeymoon period with streaming platforms is now over. The tide is turning and strategies are evolving. Unfortunately, they are not in favor of subscribers.
The era of cheap streaming is now behind us. By modifying their economic model, the platforms hope to replenish the coffers. At the same time, they delight advertisers who see the inevitable arrival of advertisements as a real gold mine.
The inevitable choice ?
In November 2022, Netflix gets the ball rolling by launching its advertising-supported offering. If the idea raises the eyebrows of many people, it appeals to many users who accept these advertisements in exchange for a few euros less on their monthly bill. This initiative allows the red N platform to gain several million subscribers, which should not be neglected. A good vein that Disney+ could not resist. A year after Netflix, Mickey's streaming platform is also launching its offer with advertising, at more advantageous prices. And take the opportunity to offer a new premium formula, more expensive, of course.
Amazon must have felt alone and therefore took the lead from its competitors. With one difference… Jeff Bezos' streaming platform imposes advertising on its subscribers. Where Netflix and Disney+ offer a cheaper plan, Prime Video adds a 1.99 euro option so as not to suffer from advertisements. A slight difference which is rather clever given that we imagine that many subscribers will not have the courage to do the manipulation and pay to do without advertisements.
This turnaround can be understood. For a time, streaming platforms were new and exciting. Fans of films and series discovered a new way of consuming content, at attractive prices, without advertising, with a certain freedom and with a catalog that will make you dizzy. But the years have passed and the spark may no longer be there. There are more and more streaming platforms on the market, original programs are less and less of a dream for subscribers and above all, consumers have already fallen into their nets. It is therefore no longer a question of attracting new potential subscribers and we must therefore change our approach.
By offering offers with advertising, the platforms streaming services are opening up to a new target, with tighter budgets and lower requirements. Enough to increase their number of subscribers. For Netflix, advertising was a winning bet. Six months after its launch, the new ad break offer from the red N platform has attracted 5 million monthly active users worldwide, with an average age of 34 years.
< p style="margin-left: 40px; border-left: solid 4px #1EC659; padding-left: 10px;">Also read – The golden age of streaming platforms is no longer
Subscriber hell, advertiser paradise
The arrival of advertisements on streaming platforms is enough to make advertisers jump for joy. With all the data they collect on their subscribers, advertisers will be able to broadcast super-personalized advertisements. By knowing the tastes of Internet users much better, there is reason to increase sales. The next step would be clickable advertisements so that Internet users can directly purchase the featured product.
Ultimately, the big loser is the subscriber. Faced with positive results, there is a good chance that other platforms will fall for advertising. Between the arrival of advertisements, which hamper the user experience, and prices which continue to increase, consumers (and their wallets) are bearing the brunt of these strategic platform changes. However, let's put the church back in the middle of the village: American consumers pay a small fortune for cable and eat ad after ad. Something to put into perspective ?
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