On its new, ad-supported membership tier, Netflix, one of the biggest video streaming services currently in use, has declared that it would not allow any cryptocurrency-related material or advertorial placements.
The site had earlier stated in July that it will soon be launching this particular membership tier, with the intention of doing so in order to appeal to a larger audience by offering a lower starting pricing.
Given that the launch of this new subscription tier is scheduled for November of this year, projected revenue information has not yet been released. However, it appears that Netflix is about to lose some momentum and support as a result of its most recent statements opposing crypto-related ads on its platform.
This resolute move has been taken by Netflix prior to the debut of the new subscription tier. Netflix, however, is not only targeting cryptocurrency; the prohibition also applies to advertisements that deal with divisive topics like politics and gambling.
Ads that promote items to youngsters are likewise covered by this restriction. Sources with knowledge of the situation claim that there would also be certain limits on medicinal items.
The action might be considered as Netflix doing its part to prevent the issue of cryptocurrency commercials running amok on their platform, somewhat unlike to what we saw during the Super Bowl advertising war that took place between prominent crypto exchanges like Coinbase and FTX. Given the global decline in Netflix subscribers, the amount of advertising and marketing expenditures made by these companies might dramatically increase Netflix’s income.
In addition to the initial loss of 200k customers in Q1 2022, Netflix lost another 970k subscribers in Q2 2022. The company even went on to say that it will be putting in place certain cost-cutting initiatives in order to keep its margins at a 20% profit level.
The complicated question in this situation is whether Netflix would ultimately benefit or suffer harm from such exposure to or relationships with cryptocurrencies.