Netflix will collaborate with Nielsen ratings to roll out its ad-inclusive plans. The streaming giant thinks allowing consumers to comment on its material can enhance its content and user engagement.
Netflix announced the agreement on Thursday, and Nielson’s digital audience measurement will be applied in 2023.
It will be the first time that Netflix has added a rating tool to all its programs. The decision coincides with the company’s launch of its ad-inclusive plan, which includes a $6.99 plan and will be offered in numerous regions beginning November 3.
Users in the United States and other nations will be offered the plan to increase income for the corporation. Earlier this year, Netflix suffered a significant reduction in members and, as a result, a loss in income.
Since then, Netflix has considered methods to cut spending and boost revenue. As a result, the firm began to lay off many staff earlier this year. And as a result, the executive decided to impose ad programs on its offerings.
Jon Watts, managing director of the Coalition for Innovative Media Measurement, claims that Netflix’s latest action illustrates that the company is prepared to embrace the value of advertising and its ecosystem. He also states that Netflix is serious about the change.
“It also raises interesting questions about the future evolution of the market, with TV and streaming converging and learning to co-exist,” he said.
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Adding Nielsen to the equation
Nielsen is a firm that many streaming services and cable TV broadcasts rely on. Nielson’s capabilities enable broadcast and streaming firms to obtain statistics indicating the amount of their audience reach. This knowledge allows you to change, retain, and innovate material.
Amazon Prime is one of the firms that has lately approached Nielson. The firm requested Nielsen to track its Thursday Night Football audience, which began airing in September.
Loss of viewership
Netflix shed almost 200,000 customers in April. This has left the corporation rushing to get back on track, as competitors saw it as a way to gain an advantage. Since the pandemic, Netflix has generated record-high income and viewership reaching millions every month. However, the loss of subscribers led to investor skepticism, causing the company’s stock to fall.
“Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we’ve done for the last 25 years and to better monetize our big audience. We’re in a position of strength given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow and a strong balance sheet,” said the company at the time.
However, the corporation persisted and employed strategies to restore its place in the streaming industry.
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Streaming firms and offers
Netflix has recently accepted the concept of implementing ad-inclusive packages. Other competitors, such as Hulu, HBO Max, and Disney+, have all launched their services. Some have been doing it for years, while others are fresh to the environment. Here are a few of the options:
Netflix
$6.99 − basic with ads
$9.99 − basic without ads
$15.49 − standard without ads
HBO Max
$9.99 − with ads
$14.99 − without ads
Hulu
$7.99 − with ads
$14.99 − without ads
Paramount+
$4.99 − with ads
$9.99 − without ads
Peacock
$4.99 − premium with ads
$9.99 − without ads
Disney+
$7.99 − with ads*
$10.99 − without ads*
*Available starting in December
Photo Credit: Netflix
Source: CNBC
