- Netflix bosses have said they “expect advertising revenue to roughly double in 2025”
- This is due to the introduction of personalized ads in the second half of the year
- However, this decision could put subscribers off Netflix’s ad-supported tier
The best streaming services are always adding new features and trialing new things, but Netflix‘s decision to focus on interactive ads might frustrate subscribers.
Speaking in a conference call, Netflix co-CEO Gregory K. Peters said: “The most immediate benefit from this rollout is just making it easier for advertisers to buy on Netflix. We hear that benefit, that ease from direct feedback talking to advertisers. They tell us that it’s easier. We see it in our overall sales performance.”
He added: “There’s also leveraging advertiser and third-party data sources, which we definitely hear demand for as well. And it will ultimately allow us to improve the ad experience for our members, which is critically important. So that means better ads personalization.”
This isn’t the only change Netflix has teased, as they also discussed making their adverts more interactive for viewers.
Peters concluded: “We’re also going to be introducing interactivity in the second half of the year. So that’s exciting. So that’s all to say this is a pretty significant milestone for us, one we’re super excited to get behind us because now we can shift into the steady release cycle where we’re dropping new features all the time, both for advertisers and for members.”
Focus on ads might provide frustration for Netflix subscribers
If you’re currently on Netflix’s “with ads” plan, you should expect to see these changes coming soon. However, while it’s an exciting time for the streamer, viewers may not be as enthusiastic.
Subscribers are currently paying $7.99 per month for Netflix Standard with Ads. And when you look at ad-free streaming services like Apple TV+, which charges slightly more at $9.99 per month, it might make people wonder if they’re getting the best value for money.
Ad-supported tiers are common now, of course, with rival streaming services like Disney+ and Hulu also offering this option. But constant ad-breaks are a pain, and one of the reasons many of us move away from linear TV.
Everyone will have their own opinion on this decision, as some people don’t mind the ad breaks and use them as an opportunity to have a break themselves. We’ll just have to wait and see how these personalized ads do once the rollout is complete.
