The new NETFLIX will (still) be crypto-free

Rebel – Netflix is ​​losing momentum since the arrival of its many new competitors. By the announcement in April 2022 of the loss of 200,000 subscribers, the promotion had fallen by 25%. For the restart, Netflix is ​​therefore looking for a new formula based on advertisements. But from this publicity she wants to ban cryptos, she who launched her anyway treasure hunt of NFT not too long ago.

NETFLIX Is Against Cryptocurrency Ads

The new formula that Netflix finds consists of setting up a new, cheaper package in exchange for watching tailor-made advertisements. Thereby Netflix has reportedly reported banning cryptocurrency-related ads, while others have been easing their policies on this for many years.

Indeed, with a launch planned for November, the information about this new program is becoming clearer. The Sydney Morning Herald reports that: Netflix has reportedly decided to reject ad campaigns related to politics, gambling and cryptocurrencies. Local newspaper sources also reported that the marketing of children’s products will be banned and that the platform is considering restrictions on pharmaceutical advertising.

Netflix Headquarters in Los Gatos, California – Source: Wikipedia

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The financial situation of Netflix and ROE

After the loss of 200,000 subscribers in the first quarter of 2022, the decline for the well-known platform continued. In the second quarter, no fewer than 970,000 subscribers had disappeared. Netflix wants to avoid investor flight and the Return on Equity (ROE). They had announced cutting costs to maintain a 20% margin. Despite the subscriber decline, Netflix’s ROE remained at 30.06% on June 30, 2022, while it had peaked at 38% on September 30, 2021.

“ROE is a financial indicator that measures the return on equity invested in a company. These funds are invested by the latter’s shareholders. ROE is often criticized by economists as being too high, distracting companies from their primary objective. Often even 15% is expected, which meansyoue to reduce costs to ensure appropriate dividends. »

Netflix promotion – Source: Google

Therefore, in order to preserve the margins, Netflix had laid off 150 employees and halted production on a number of shows and movies. Morale is therefore bleak within this company, which has up to 11,000 employees. Prior to these events, Netflix employees praised the company for its positive business operations and good atmosphere.

WHAT DO WE KNOW ABOUT THIS NEW NETFLIX?

The new service is expected to cost between $7 and $9 per month, which is currently less than the price of a basic Netflix subscription. An offer that should give as many people as possible access to the site’s content, such as the Quadrigacx exchange documentary. However, according to a Netflix spokesperson, the company is only at the beginning of its reflections.

“We are just at the beginning of making a decision on how to launch a discounted and advertising option and no decision has been made yet. At the moment it’s just speculation.”

A Netflix spokesperson

In fact, local sources estimate that the price will be half of the minimum plan which is currently $10.99. To develop these new custom ads, Netflix announced that it has recruited former executives from Snapchat as Jeremy Gorman and Peter Naylor. However, Netflix isn’t the first streaming company to include ads. Decisive, Amazon Prime and disney already have (or plan to have) hybrid models. Finally, Netflix would consider charging advertisers $65 to $95 to reach 1,000 users.

Linkedin by Peter Naylor – Source: LinkedIn

If we expected this new subscription in early 2023, it looks like Netflix has decided to bring forward the date for a launch in the United States, Canada, the United Kingdom, Germany and France.

A ban on crypto-related content is nothing new. For example, Meta had banned ads for digital assets on its platform back in 2018 before they were reintroduced. Likewise, in 2021, Alphabet returned to banning ads related to cryptocurrencies. Otherwise, we recommend watching Banking in Bitcoin on Netflix, a good overview of the history and ideology behind the first phase of Bitcoin’s development.

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