Apr 29, 2022
Ads could be coming to Netflix and Xbox and Playstation. But if Elon’s deal goes through (and that’s a very big if right now), advertising could be leaving Twitter.
Growth is slowing at Netflix and they’re looking to generate revenue in different areas of their offering. However, adding in ads to the lowest priced tiers will interrupt the viewing experience, and potentially drive users to other platforms instead of upgrading to more premium tiers. Same goes for gaming. Users don’t want their gaming experience interrupted by ad breaks.
Or do they? Many said that paywalls would break publishing, but the opposite has so far proven the case at publications like The Times. However, even here, the tide may be turning. Online publisher Quartz have decided to remove their paywall in favour of more democratic access and advertising.
The problem with the approach of Netflix and Microsoft is that they’re expecting consumers to absorb the double whammy - pay for the privilege AND have their experience interrupted by advertising. Time will tell on whether their strategy pays dividends or sees a further decline in subscriber numbers.