Streaming giant Netflix plans to roll out ads in Australia as early as November

Netflix plans to introduce ads to the platform in Australia as early as this year as it tries to revitalize its sagging profits.

The global streaming service has struggled to see revenue growth after a million subscribers left the platform in the last quarter, with ads set to appear on the service for a reduced fee.

Local media sources, who spoke on condition of anonymity, told the Sydney Morning Herald that Netflix had started looking for local advertisers ahead of the rollout.

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Ads are meant to run at the start of an episode or movie and subscribers won’t be able to skip them.

Netflix would also discuss running ads in the middle of movies or episodes.

The ad rollout is set to launch in Australia as early as November and Netflix has moved to ban political, gaming and cryptocurrency companies from using the service to advertise, sources told the newspaper.

The cheaper service that will show the ads is expected to cost around AUD$8, which is cheaper than the current price of a Netflix subscription which is now between AUD$10.99 and AUD$22.99.

Netflix first announced the new ad-supported service in April before later revealing it would be partnering with Microsoft to introduce ads.

“Microsoft has the proven ability to meet all of our advertising needs as we work together to create a new ad-supported offering,” Netflix COO and Chief Product Officer Greg Peters said in a statement. of July.

“We are only at the very beginning and we have a lot to do. But our long-term goal is clear. More choice for consumers and a premium, better than linear TV brand experience for advertisers. We are excited to work with Microsoft to bring this new service to life.”

Netflix has struggled financially this year, with its share price falling from US$597.37 in January to US$226.11 on Friday as it was dropped due to first-time subscribers leaving the story.

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