Why did Netflix and Disney decide to use ads?

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Netflix advertising
Streaming platforms like Netflix and Disney+ were known for their ad-free approach until recently. But that has changed recently, with both platforms starting to offer advertising options to attract a wider audience and improve their competitiveness in the market. What advertising options do these two platforms offer, what does it mean for users, and what benefits can they bring to advertisers?

Historically, both Netflix and Disney+ have built their value on an ad-free experience. Viewers could enjoy their favorite movies and series without any interruptions. However, increasing competition in the streaming market, changes in user behavior, and pressure to increase profits have forced these platforms to take a new approach. The introduction of ads has allowed both companies to offer cheaper subscriptions, making them more accessible to a wider audience. It has also opened up new opportunities for advertisers to reach viewers on these platforms.


Advertising on Netflix

Advertising options on Netflix
Netflix began testing the advertising model in 2022 and soon after launched the plan with ads in sweden phone number data several countries. Here are the main features of the advertising model on Netflix:

Ad-supported plan: Users can choose a cheaper subscription that includes ads. This plan typically has a limited number of ads per viewing hour and shorter ad lengths than traditional TV ads.
Content-based targeting: Advertisers can target their ads to specific content categories, such as movie and TV series genres, to more effectively reach viewers who are interested in that type of content.
Ad Formats: Netflix offers short ads before the content starts (called pre-roll) and during the viewing (mid-roll). Ads are usually short, lasting 15-30 seconds, which minimizes disruption to the viewing experience.