Netflix’s New Advertising Gameplan
Netflix is shaking down its subscriber numbers and looking to bring advertising into the mix, according to co‑CEO Ted Sarandos this week at the Cannes Lions conference. The streaming juggernaut that’s been on a growth streak for a decade is now gearing up for a cheaper, ad‑spiced subscription tier.
Who’s on the Hotline?
Sarandos spilled the beans that Netflix is in talks with Google and NBCUniversal—two heavyweight players in the advertising world. Early statements by media outlets had already hinted that the streaming titan was jiggling its options with these tech and media firms.
- Google’s Alphabet is U.S.‑based and can help Netflix spread its reach into the vast world of search and display ads.
- Comcast’s NBCUniversal, meanwhile, could bring a whole new set of ad inventory from its broadcasting and media assets.
“We’re Talking to All of Them”
When reporters asked which company Netflix was eyeing, Sarandos shrugged and said, “We’re talking to all of them right now.” The comment came with a flicker of possibility in the room, but neither Alphabet nor Comcast responded to a quick request for comment.
Why the Shift?
Netflix has just experienced a subscriber loss for the first time in a decade—and it looks set to fall short by roughly two million this next quarter. That slump, combined with a boom in streaming during the pandemic that has now pulled back, has put the company on the hook for a new strategy.
In April, Netflix declared it was seriously considering advertising. Sarandos clarified that:
“We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘hey, I want a lower price and I’ll watch ads.’”
Disney+ Is Not Sitting Idle
The fierce competitor, Walt Disney Co.’s Disney+, is also testing the waters. The brand plans an ad‑supported tier, riding the same wave of competition and inflation tightening that’s turning millions of wallets into wary pockets.
Will Streaming Change?
It’s a gamble—mixing ads into the ubiquitous binge‑watch culture might shake up the home‑entertainment experience. But as the streaming boom cools, the play to keep viewers (and revenue streams) alive could just be the next big move.
