Netflix bans cryptocurrencies on ad-supported version
Netflix bans the inclusion of crypto-related information in an ad-supported release coming out in November.
The Sydney Morning Herald reports that streaming giant Netflix has decided to reject all advertising campaigns related to politics, gambling and cryptocurrencies. A new version coming soon will incorporate advertising into cheaper movie subscriptions that are more accessible to users.
According to Variety, to compete with Disney+, Netflix has moved the ad-supported version to August. Initially, it will only be available in the United States, Canada, the United Kingdom, Germany and France first. when expanding to the international market next year.
The cost for this version of Netflix is about 7-9 USD/month. Disney+ has also confirmed the company will charge users $7.99/month.
Advertising has been a "taboo" on Netflix for many years. However, the company is indeed going through the most difficult days in its 25-year history. For the first time, in a decade, Netflix slipped in a series of days when it lost a large number of subscribers. In the second quarter alone, the giant lost 970,000 paid subscribers after 200,000 in the first three months of 2022.
From the beginning of the year until now, Netflix's share price has not been very positive, having decreased. 62% and is currently trading around the $226 mark per share. Faced with stagnant business, Netflix announced it would cut costs to keep profit margins at 20%.
Due to regulatory scrutiny, crypto bans have become a breath of fresh air for the industry. In 2018, Meta (formerly Facebook) also banned cryptocurrency ads on its platform before “returning the order”, but still has big ambitions in the industry, although it is still “lossy”. Or back in 2021, Alphabet has relaxed the ban on crypto advertising and it is also the parent company of Google that spends $1.5 billion more than any other public company investing in blockchain.
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Sep 06, 2022