A stagnant subscriber growth in recent quarters led Netflix to consider an ad-supported tier.
While opening up content to non-paying subscribers in an ad-supported model, Netflix can explore a diversified revenue model where it can combine content, commerce and commercials into a single, seamless experience. The author suggests streaming platforms can contemplate offering livestreaming retail, immersive content-as-advertising and more.
Netflix can let brands utilise the platform’s own studio services to build engaging CTV experiences, which are unique to their platform. With access to high-quality first-party data, Netflix can inform personalised ads for viewers.
With access to audience payment methods, Netflix can also capitalise on opportunities like one-click shopping. Further, by enabling brands to focus on a seamless and closed loops to drive conversions, the streaming platform can collect more data on non-paying subscribers in addition to revenue.
[3 minute read]
