One of the most relevant streaming platforms, Netflix is all set to bring a massive change in its operations and consumer base. The streaming service is diligently working towards introducing an ads-based subscription to attract new consumers. There have been a lot of speculations in the market regarding the Netflix ads.

The ongoing coronavirus pandemic has hit Netflix hard. In its quarterly report, the platform mentioned that they have lost close to a million subscribers this year. This is a massive downfall for the website over the last 25 years.

Also, there was a decline of approximately 65 percent in the company’s stock last November. One of the major reasons behind the downfall is Netflix’s high-priced plans as compared to its competitors Amazon Prime and Disney + Hotstar.

Netflix to not have any ads in children’s programs

Thus, to influence the lower-price audience, the streaming platform is introducing Netflix Ads. While this is certainly good news for many people out there, the company has to face some repercussions as well.

As per a report published in The Financial Express, Netflix has decided to not run any ads in the kids’ original programs. This has been done to avoid any kind of legal proceedings. It was not long back that companies like Google and YouTube were fined a hefty sum of $170 million for violating kid’s privacy laws. 

Further, some insiders reported that the companies who produce kid’s content for the streaming platform are strictly against commercials. Meanwhile, original Netflix movies can also get away with the ad-based system.

Original movies to also run ad-free?

Not many filmmakers are pleased with the idea of interrupting the movie in between for the platform to run commercials. There is a lot of content on Netflix that is sourced from outside studios. Many such companies don’t give the right to play the content in the ad-supported environment.

Thus, currently, the streaming platform is trying hard to offer a good deal to organizations like Sony Group Corp., Warner Bros. Discovery Inc, and Paramount Global. It is expected that the streaming service will have to pay ten to 15 percent in excess to get the right.

However, this shouldn’t be a big concern as they are expected to earn a revenue of $3 billion to $4 billion in a year through advertisements. 

Do you think the ad-based subscription will uplift Netflix’s economy? Share your thoughts in the comments.