Netflix Bans Cryptocurrency Ads On Its New Subscription Tier
Netflix is expected to launch its ad-supported service later this year, possibly by November. According to a report from the Sydney Morning Herald, the streaming giant will ban cryptocurrency ads.
A crypto advertising ban may be under consideration by Netflix. According to a report from The Sydney Morning Herald on September 5 that uses local media sources, Netflix has started talking to Australian local advertisers. These sources claim that the streaming juggernaut will outlaw numerous forms of advertising, including bitcoin advertisements.
According to the article, Netflix would also forbid commercials for gambling, politics, and kid-targeted content. Ads for pharmaceuticals could also be subject to regulations.
Uncertainty surrounds whether the prohibition on cryptocurrency advertisements will be restricted to Australia alone or encompass other nations that use the ad-supported service, including the United States, the United Kingdom, Canada, France, and Germany.
In August, Australia announced plans to regulate crypto assets and related advertisements in such a way that customers are “adequately informed and protected”. Though those rules do not ban cryptocurrency advertising outright, it is possible that Netflix does not want to run afoul of local rules.
At the same time, the report does not state or imply that the ban on crypto will be limited to Australia.
Netflix told The Sydney Morning Herald that its ad policies are currently undecided. A spokesperson said that the company is “still in the early days” of determining its advertising model and that “no decisions have been made.”
With global subscribers declining in consecutive quarters, Netflix announced in July it would launch a new ad-supported service to boost revenues. In the second quarter, the streaming giant lost 970,000 paid subscribers after losing 200,000 in the first three months of 2022. Faced with slowing revenue growth. Netflix disclosed in June it would cut costs to keep its margins at 20%.
If Netflix does go ahead with the ban, it will join a list of other Big Tech giants to take a stance against crypto marketing. Google and Facebook (now Meta) banned crypto advertisements in 2018.
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