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Netflix: subscription with advertising is a flop, the giant forced to reimburse advertisers

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Netflix’s advertising subscription is apparently a sound flop: nobody cares and advertisers, who hoped to reach millions of users, are furious. To say it is the magazine Digiday, according to which the subscription would not have obtained the desired numbers.

 

Incumbent subscribers prefer to pay more than suffer commercial breaks and potential new subscribers are not convinced by the price, which is still too high for their tastes. Netflix with ads has been available for a few weeks also in Italy, and not only in the USA.

Netflix would reach about 80% of the subscribers it had communicated to potential advertisers . Numbers, therefore, not irrelevant but still extremely subdued compared to the expectations heralded to partner companies.

The giant could now be forced to dip into its wallet and return part of the advertising investments made. The possibility of a refund in the event of a fiasco was part of the contractual clauses.

 

Other companies not only demand reimbursement, but have already decided not to invest a penny in Netflix advertising as early as next year. It wouldn’t be worth it.

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Clearly it is too early for Netflix to pull the oars in the boat: the giant is trying to figure out how to push its new subscription with advertising and convince more users to subscribe.

 

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