Netflix, one of the leading streaming platforms, is planning to ban advertisements related to cryptocurrencies after launching an ad-supported subscription package. In November, Netflix plans to introduce ads to help the streaming giant expand its revenues and retain its customer base.
Netflix to ban crypto ads from streaming service
A report by The Sydney Morning Herald on Monday said that Netflix had decided to eliminate all the advertising campaigns related to a wide range of things such as gambling, politics, and cryptocurrencies in its new subscription service.
The new Netflix crypto ads version will not support ads that involve products for children. The sources have also said that there would be restrictions on pharmaceutical product advertisements.
A report by Variety said that Netflix would launch the new subscription service sooner than expected. The subscription tier would be cheaper than the other subscription packages. The new subscription tier would differ from other streaming platforms such as Disney+.
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Disney+ is planning to unveil its ad-supported plan on December 8. Before this, Netflix had planned to launch an ad-supported version that would commence in 2023. The new Netflix subscription service will be launched on November 1 in various countries, such as Canada, France, Germany, the United Kingdom, and the United States.
Netflix has not been reporting positive financial results over the past year. In recent quarters, the global subscribers on the platform have declined significantly. In July, Netflix announced it would support a new ad service that would increase the company’s revenues.
During the second quarter, Netflix lost 970,000 paid subscribers after it lost 200,000 during the first three months of this year. In June, Netflix has been facing slow growth in revenues, and the streaming giant stated it would lower costs and maintain its margins at 20%.
Regulatory scrutiny over crypto ads
Regulators have expressed concerns over cryptocurrency advertisements’ rise despite the crypto space’s risky nature. Bans on crypto assets are not new in the digital asset sector. In 2018, Meta, the leading social media giant, banned cryptocurrency advertisements across the platform. However, it later reinstated these crypto ads later in the year.
Last year, Alphabet, Google’s parent company, reversed a ban imposed on cryptocurrencies. The company has now allowed exchanges and wallet operators to promote their services on the platform.
The Thailand Securities and Exchange Commission (SEC) also recently imposed strict regulations on crypto ads. The Thai SEC said cryptocurrency firms must share information on their crypto advertisements to guarantee that users are protected.