TV channels have been struggling to survive with modicum advertisement revenue. Many of the news channels in India are running with the support and funding from the political parties and the allied businessmen.
Still, some top channels are just making the both ends meet with the revenue through advertisements. But now, the story is going to change completely. Many TV channels may find it difficult to find advertisements as Netflix has taken a new decision.
Netflix on Thursday said a subscription option subsidised by ads will start in November in more than 10 countries as the streaming service struggles to steep growth.
Basic with Ads subscriptions will be priced at $6.99 in the United States, three dollars less than a basic option without ads, Netflix chief operating officer Greg Peters said in a briefing.
"The timing is great because we really are at this pivotal moment in the entertainment industry and evolution of that industry. Now streaming has surpassed both broadcast and cable for total TV time in the United States", Peters said.
The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.
What happens if this comes to India?
All the big companies shift their expenditure on TV Ads to the Netflix Ads as the reach will be more with heavy traction of viewers, especially when the new films start streaming on this platform. The same method will be followed by the rest of the platforms as well.
"With the launch of cheaper, ad-supported subscriptions, Netflix and Disney+ are expected to bite into the revenue of traditional television channels", says a media source in the USA.
