On Netflix, you will now see advertisements while watching your favorite movie, compromise with Microsoft to increase earnings

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On Netflix, you will now see advertisements while watching your favorite movie, compromise with Microsoft to increase earnings
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10:21 AM August 4, 2022
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Netflix can enjoy watching your video in the coming days. When you are watching a movie or web series with full enlightenment, only an advertisement can come. And not once can come many times. Yes, this is going to come true. The thing is that last month Netflix has tied up with Microsoft to offer its users cheap, ad supported streaming plans. Due to this, Netflix users can feel cheated, then take a premium plan of Netflix. Now why Netflix has to do this, let's know it.

Netflix's revenue was growing at a rate of 15-25 per cent during the epidemic, but in the last two quarters this rate fell to 9.8 per cent and 8.6 per cent. Here the operating margin is also falling. The third quarter of 2021 had 22.8 percent margin and 19.3 percent in the second quarter of 2022. In such a situation, Netflix is ​​seeing the way of earning from advertising.

According to a report, digital advertisement expenses in the US alone were about $ 240 billion in 2022 and expected to cross $ 315 billion by 2025. Is. Now Netflix users know the base. The user base of Netflix is ​​about 22.1 crore. In the first half of 2022 after achieving continuous subscribers for a decade, it suffered a loss of 12 lakh users. Has been proved. Between the second quarter of 2018 and the second quarter of 2022, the number of customers from the US and Canada increased only 18 per cent. The number of customers from Europe, Middle East and Africa has increased by 133 per cent and Asia-Pacific by 316 per cent. There is a good market scope with about 7.3 crore Netflix customers in US and Canada. At the same time, the market of Africa and Asia will also prove to be better in the coming years.

Netflix has made a lot of preparation on this front. Netflix has increased its market by reducing the subscription rate in international markets. The ARPU in the US and Canada is almost double the average revenue per user and almost double from Latin America. According to an analysis by Comparitech, its ARPU in India was similar to ARPU in rich countries such as Australia, New Zealand, Singapore and South Korea in the first quarter of 2021. Argentina and Brazil's ARPU is $ 7.40.

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