Game streaming and advertising: if Netflix is ​​going to have more revenue, the creators want their share

After the premiere of the plan with advertising of Netflix that has given us so much play in 2022 and that implies from November 10 for €5.49 per month, access to its content (although not all) with advertising, the streaming platform has opened the door for creators to demand a bigger piece of the pie.

Netflix launched its service with advertising to compensate for the slowdown in subscriber growth, although it has been of little use, since we are talking about almost zero reception. For example, andIn the US, we’re talking about only 9% of Netflix subscribers opting for the new “Basic with Ads” plan.

“A show that does well will have more advertisers and more revenue for Netflix. So our customers who created that show should be compensated for that extra revenue.”explains Jeremy Zimmer, director of United Talent Agency, one of the agencies where most of the creators of Netflix content come from.

It further says that Netflix’s advertising support service has “Changed all the rules [al decir] which is no longer an ad-free environment. There’s a different revenue stream coming in that they said wasn’t going to be there.”

Content creators vs. Netflix and its extra income from increased advertising

Netflix, of course. has resisted for a long time to profit-sharing agreements with content creator agencies for their platform.

However, according to Zimmer, the previous standards were tied to an ad-free platform. “In this way, the company obtains a different source of income from the one it had said it was not going to have”, it states. In short, the game has changed so the rules attached to it should also be changed.

If we talk about a greater increase in the views of series Like Wednesday, which has generated so much success, those who enjoy the series while subscribing to the “Basic with Ads” Plan will generate more income for the platform, so this the benefit should be better distributed.

Taking all of this into account, it seems like we’re forgetting about another big section of Netflix, video games. And it is that, as you already know, 2022 has been quite a commitment to this sector.

Netflix it has fewer development studios compared to companies like Microsoft and Sony, that’s true, but the deals point to Netflix’s emerging strategy as it tries to catch up with its competitors.

In addition, something that has surprised us and that has already been put on the table is that, in the face of 2023, we could be part of how Microsoft, in a series of continuous purchases, finally takes over Netflix, as Reuters explains in his predictions.

Netflix already announced in July 2022 that was going to choose Microsoft as an advertising partner for its new ad-supported subscription service. That is, Microsoft will advertise its technology on the platform. However, it looks like this partnership could turn into something else in 2023.

To this we must add one last news reported by our colleagues from Hobby Consoles: Sony Interactive Entertainment could be working on a cloud gaming system that could be integrated into streaming services like Netflix and YouTube.

Of course, Netflix’s ability to adapt new series and movies to its environment is one of the main reasons for its success. The founders are well aware of their value proposition for each customer segment and, furthermore, we have already seen that the company has the right partners and they help it grow.

The new pricing strategy will ultimately determine the success or failure of the business. Striking a balance between a profitable price and what customers are willing to pay for your products or services, as well as satisfied creators, is quite a challenge.

However, according to a report last April, Netflix lost 200,000 users after uploading its price at the beginning of the year. It is the first time this has happened since 2011. The streaming service has continued to lose another 2 million subscribers in the following months, which has led to its worst year in history (2022). The actions they have plummeted by up to 60%.

The reasons for this loss are several.including strong competition from other companies, the inability to expand into some territories due to technological limitations, the Ukraine-Russia war, and account sharing.

Netflix, for its part, is not giving up yet. The company intends to recoup its losses with its “Basic with Ads” subscription plan, though First you must overcome this great problem that arises. After all, the platform is nothing without quality content.