Netflix’s game plan: More ads, microtransactions, and a push for new premium tier
Bans on account sharing and ad-blocking features, incentives for binge-watching, standard price hikes, and extra payments for avoiding promotional interruptions - the recent changes implemented on streaming platforms are numerous. It seems the platform owners are pulling every string to maximize their already staggering profits, inconveniencing their subscribers in the process.
Unfortunately, these services have such a strong foothold in the market that little can harm them. The expected user exodus following the ban on profile sharing didn't materialize. Netflix's recent experiments with advertising have shown promising results.
Addition of more advertisements
As a reminder, Netflix launched a cheaper package in some markets at the end of 2022. In return for lower subscription costs, users are obliged to watch periodic ads. This offer proved successful with about 15 million people opting for it by November last year.
According to unofficial reports from "The Wall Street Journal", Netflix aims to monetize its relatively unknown games segment (with many users not even aware of its existence). Subscribers can play these games on both mobile phones and tablets, regardless of their operating system. At present, these services are ad-free, but that could soon change.
The streaming giant's executives are considering incorporating short ads into their game titles that are included as part of the purchased package. Some games may even feature microtransactions. "The Wall Street Journal" reports that this could be a step towards introducing a premium category and charging an additional fee for game downloads.
Netflix has yet to confirm this information. However, the trend is apparent. The only remaining question is whether the video streaming leader will choose to follow it.
