Listen "Is Netflix going to start running adverts?"
Episode Synopsis
Netflix makes almost all its revenue from subscription fees. And some of the big streaming giants are concerned that their service might be among the first cuts being make if they are trying to reduce their household outgoings. Of course the companies themselves are also having to pay more just to run their businesses as all of us try to deal with the cost of living crisis. Netflix has already put its prices up for many users but what if it introduced adverts between the shows. Research from LoopMe, involving 300 UK consumers, found that 36% said they'd cancel their Netflix subscription if it became advertiser funded. Many commentators believe the company is exploring cheaper subscriptions with adverts and more expensive tiers which would remain ad free. There's also the Netflix gaming service which has started small in the US but could expand. Streaming is a highly competitive space and these rich, powerful companies need to keep reinventing themselves to keep your subscription revenue coming in.
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