Netflix and other video streaming services benefitted greatly from the pandemic. The number of subscribers reached a pinnacle, putting them in the public eye. But this notion did not stick around. The number of Netflix users worldwide significantly decreased when life returned to normal and many switched from working at home to traditional offices.
Therefore, the company announced the launch of a less expensive membership tier that included advertising in an effort to boost its income.
Another industry that witnessed a spike during the pandemic was the crypto-verse. Bitcoin [BTC] and other assets witnessed widespread adoption and had lured in several. While several included crypto as a payment method, Netflix decided to steer away. Now, it seems like the streaming giant did not want any association with the industry as it banned cryptocurrency-related commercials on its aforementioned subscription tier.
It should, however, be noted that crypto wasn’t the only one on the list. Netflix announced that it would dismiss advertising campaigns ranging from politics, gambling as well as crypto. In addition to this, limitations on pharmaceutical ads were also at play. This service is expected to be priced at around $8.
It’s anticipated that Netflix’s ad-supported membership tier will debut in November. This upgrade was initially scheduled to release at the start of 2023 by the streaming juggernaut. But given that Disney+ is launching its own ad-supported program, the company appears to have fastened the launch date.
Why are firms steering away from crypto ads?
It should be noted that the crypto ad business was thriving at the beginning of 2022. The plethora of cryptocurrency-related commercials during the Super Bowl was lauded by many. However, the onset of the bear market urged A-listers to steer away from the industry.
In addition to this, regulators from across the globe have been imposing heavy scrutiny on the crypto ad industry. Several networks were warned and sued as well. In India, the Advertising Standards Council of India [ASCI] noted that over 400 ads on crypto had violated the guidelines set by them. The UK’s Advertising Standards Authority went on to sideline 50 crypto firms for “misleading” crypto advertisements.
With all of this at play, prominent brands endorsing crypto could take a backseat for a while.