Wall Street Journal: Netflix Considers Establishing Its Own Advertising Division

Netflix is ​​considering setting up an internal advertising division. The streaming platform is already in talks with various advertising companies, but does not rule out developing its own department in the event that advertising becomes more important for the company.

Journalists from the American newspaper The Wall Street Journal could start a conversation with Netflix co-CEO Ted Sarandos. He previously stated that the company is in talks with Google and Comcast regarding the provision of advertisements and that Netflix only wanted to act as a publisher when it comes to advertisements.

However, if those ads become more important to the company, Netflix eventually wants to set up its own internal division to keep control over them, according to Sarandos. After all, the co-CEO reportedly wants ads to be well integrated and less disruptive compared to ads on cable TV. “I want our product to be better than television,” it sounds.

The man did not give a date when customers can expect advertisements, but according to The New York Times that could be by the end of this year. The company has also not yet disclosed prices for subscriptions with ads.

At the end of April, it was announced that Netflix is ​​looking for a larger audience. It therefore wants a wider spread in subscription prices to increase that audience. During the second quarter of this year, Netflix’s subscriber base declined for the first time in a decade. At the end of 2021, Netflix had 222 million subscribers worldwide. In the first quarter of 2022, the company had 200,000 fewer subscribers than the last quarter of 2021. It expects a two million subscriber decline in the second quarter.