Tuesday, October 4, 2022

Netflix bans crypto ads on its streaming service

With less than two months to go before launching its ad-supported subscription package, streaming giant Netflix has reportedly banned all forms of crypto ads and campaigns on the said package.

According to a Monday report by The Sydney Morning Herald, the new package is expected to be significantly cheaper due to the support for commercials. However, there are about four areas in which Netflix has decided it won’t allow advertising campaigns. They include cryptocurrencies, politics, gambling, and ads selling products to underage children. Meanwhile, considerations are also ongoing regarding whether or not ads related to pharmaceuticals should be banned as well.

Why Netflix banned crypto ads

Crypto bans are not uncommon in the digital asset space. While many giant firms would love to integrate crypto in one way or another,  lack of clarity with regulations has meant that most of them, including Netflix, sometimes just opt to ban crypto.

For instance, Facebook banned crypto ads from its platform back in 2018. However, it did restore them about a year later. Google’s parent company, Alphabet, also did something similar, albeit more recently. Alphabet reinstated crypto ads in 2021 after previously banning the same.

It might be worth mentioning that Netflix has moved up the launch date of the ad-supported subscription plan. Initially, the launch was slated for early 2023. But as Variety can now confirm, the launch will begin on November 1, across several countries.

From all indications, this change in launch date plans appears to be a move to compete with Disney+ which is also launching its own ad-supported plan on Dec. 8.

The new ad-based plan

Interestingly, Netflix came up with the idea of the ad-based plan in July. That was when the streaming giant noticed that its global subscribers were reducing nonstop.

Putting that into perspective, Netflix lost 200,000 paid subscribers in the first quarter of 2022. But as if that was not enough, by the end of the second quarter, the platform lost another 970,000 paid subscribers. 

So, with slowed growth and reduced revenues, Netflix decided to launch this new ad-supported service to help boost revenues.

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