When it comes to advertising, Netflix wants to be “better than TV”

When Netflix first started streaming back in 2007, the overall goal was to give people an entertainment option that was better than the entertainment they found on broadcast television. Now, Netflix co-CEO and chief content officer Ted Sarandos says the goal remains the same as the company prepares to launch a new ad-supported option.

“We are a little far from talking about the details about the launch,” Sarandos told Kara Swisher in an interview onstage at the Cannes Lion Festival on Thursday. “But what I would say for sure is that what we do first is not going to be representative of our goals. I want our product to be better than TV. So that’s when I think about how to show ads currently on streaming Let’s go… I think there’s a lot more to be done.”

The move to integrate advertising comes at a time when Netflix faces a significant bump in the upward trend that has traditionally skyrocketed over the past decade. In its most recent earnings report in April, the company said it had lost nearly 200,000 customers, the first such decline since 2011. The stock is down 37% that week and has continued to drop more than 70% over the past six months. Netflix is ​​still ahead of the streaming pack with over 220 million subscribers worldwide, but the competition for audience attention and subscription dollars is only with Prime Video, Paramount Plus, HBO Max, Disney Plus, Apple TV Plus, and more. has become more intense. ,

When presented with Netflix co-founder Reed Hastings Frequently cited, past claims That Netflix was never interested in advertising, Sarandos tells Swisher that ads will not be part of the existing offering, just integrated into a new tier for those who want lower prices and are more inclined to watch ads.

Sarandos said, “I think it was wise for us not to advertise initially because we were creating a product that would be better than television and better for watching movies.” ,[Back then] Advertising and linear programming made television a very easy target. And we wanted to grow the business very simply so that we could grow it very fast, and the advertising was complicated.

Now is the right time, he said, because, with increased competition, Netflix has found it is missing out on a potentially large (paying) audience by not offering the ad-supported tier. Moving to the new ad-supported level will allow Netflix to compete directly with other platforms that already offer models like Hulu, HBO Max, Peacock and more. Disney Plus, According to a report in wall street journalGoogle and NBCUniversal are likely to be at the fore As partners to help Netlfix build its advertising tier.

While Sarandos was light on details about what that new tier would look like, he hinted that what made the platform so good at content will also help with advertising—as will its already booming brand. Partnership is in business.

“Audience matching is what we’ve been doing from the beginning, and I think we can do really well at that,” he said. “I think creative is something that we’ve been doing for 10 years and have been very competitive there, so to bring those worlds together and make it a great experience for both audiences and advertisers. We’ll start simple and Will iterate fast.”

s.parentNode.insertBefore(t,s)}(window, document,’script’,

fbq(‘init’, ‘1389601884702365’);
fbq(‘track’, ‘PageView’);