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Netflix Mulls Google Advertising Partnership Amidst Declining Subscriber Growth

Netflix was a game changer for the world of content creation because of the fact that this is the sort of thing that could potentially end up allowing users to watch high quality content without a cable subscription of any sort. The business strategy of this streaming platform proved to be revolutionary since it put Netflix up against far wealthier corporations such as Disney and Amazon both of which have started offering streaming platforms of their own.

In spite of the fact that this is the case, the relative novelty of Netflix’s early days has worn off and rival streaming platforms are giving it stiff competition. In an attempt to stem its declining subscriber growth rate, Netflix is considering offering a low cost subscription option to consumers that incorporate ads, and with all of that having been said and now out of the way it is important to note that this is a massive shift from the strict no ads policy that Netflix operated under for the duration of its prior existence.

It seems that Netflix is considering a partnership with Google as well as numerous others companies to have them start showing ads for users that opt for the cheaper subscription package. The estimates for how much advertising revenue this could bring in for Netflix range from $1.5 billion to $3 billion over the next two years which will do much to aid Netflix in bringing up its revenue rates and showing some solid growth to its investors.

An analysis by Marketplace Intelligence posited that Netflix could see 20 million US subscribers shifting to the low cost option if it gets rolled out, and this research suggested that the streaming platform could earn around $100 per subscriber per year which would be a whopping $2 billion in annual revenue from the US alone.

The streaming wars are fully underway, and Netflix is hanging on for dear life as subscribers exit en masse while complaining about content quality. Some are criticizing Netflix’s focus on revenue growth instead of increasing the quality of the content that they are giving to subscribers.


H/T: CNBC

Read next: Disney’s Ad Revenue Soars Past Netflix, Gap Expected to Narrow by 2025

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