Netflix plans to launch a new, cheaper subscription tier in Australia that will include commercials. The platform noted that it will be barring crypto and gambling platforms from advertising.
The new model for the streaming giant is reported to roll out before the end of the year indicating the company’s desire to increase revenue on the back of slow growth. A Netflix spokesperson told The Sydney Morning Herald that the company is still deciding on how to launch.
“We are still in the early days of deciding how to launch a lower priced, ad-supported option and no decisions have been made. This is all just speculation at this point,” the spokesperson said.
Crypto ads clubbed with political and gambling promotion
According to local sources, only national clients will be able to purchase slots when the advertising tier launches in Australia, likely by November. Additionally, the streaming service giant has opted to forgo marketing any products to youngsters and refuses cryptocurrency advertising in addition to political and gambling ads. The sources also stated that limitations on pharmaceutical ads are also being considered.
The Wall Street Journal reported last week that Netflix was considering charging advertisers a cost per thousand (CPM) of about $65 for every 1,000 viewers. And in Australia, there are roughly 28 pay-walled or advertising-supported streaming services that compete for viewers with Netflix, the paper highlighted.
Notably, unskippable advertisements will air before the beginning of each program and might also run during it. However, these advertisements won’t be visible to its $8 premier subscribers, as per the report.
Netflix steering clear of legal trouble
The owner of Facebook, Meta Platforms, Inc., was sued earlier this year by the Australian Competition and Consumer Commission (ACCC) for engaging “in false, misleading or deceptive conduct by publishing scam advertisements featuring prominent Australian public figures.” Since then, the Australian Securities and Investments Commission (ASIC) has also tightened its grip on crypto influencers or ‘finfluencers.’
As watchdogs are stringent globally, crypto platforms are also pulling away from mainstream advertising events that once offered a massive promotional opportunity. For instance, top crypto businesses, including Crypto.com, did not advertise during the 2022 French Grand Prix weekend. The same platform was also pulled up by the UK’s Advertising Standards Authority (ASA) over two ads in January.
Australia tightens its grip on the sector
Specifically in Australia, the Australian Prudential Regulation Authority (APRA) published its crypto policy roadmap and initial risk management strategy this year, which it would incorporate through 2025. Following this, Be[In]Crypto cited reports in April that stated the Australian Securities and Investments Commission (ASIC) has obstructed CBA’s banking app pilot that included crypto assets.
Last month, with the announcement of a ‘token mapping‘ exercise to better oversee the market, the Australian government also started to make fresh attempts to regulate the cryptocurrency industry. According to the Australian Financial Review, the Australian Federal Police (AFP) has also established a special squad to combat cryptocurrency-related crimes around money laundering and other illegal activities.
ASIC Chair Joe Longo had also previously said, “With so many new investors active in financial markets, the research builds on our understanding of retail investors and helps us consider where our regulatory efforts are warranted.”