- Netflix won’t allow crypto promotions when its advertising model launches later this year
- Crypto, gambling and political ads will be banned
- Netflix wants to protect itself against potential accusations of aiding scams
Netflix won’t show cryptocurrency, political or gambling adverts when its ad model rolls out later this year. According to the Sydney Morning Herald, the streaming service has decided not to allow adverts of this nature onto its platform, which has found itself forced to incorporate an ad model following a sharp drop in new subscribers this year. The move will be a blow to big players like Crypto.com who would likely have taken the chance to advertise to a wider market they wouldn’t normally reach.
Netflix Forced to Advertise After Revenue Drop
Netflix chief executive Reed Hastings announced that the streaming giant would begin exploring an ad-based option in April, with registrants paying less as a tradeoff. These plans resulted in fierce opposition, especially since Netflix has previously said it was opposed to the idea, leaving them no choice but to offer it to users as an option rather than imposing it on them.
The decision to ban crypto ads is a shame but also understandable from Netflix’s point of view. It has no ability to vet the quality of the projects that would want to advertise through it, leading to it potentially being liable if viewers signed up to a scam based on an advert they saw and lost money.
It is also likely that those most desirous of reaching the masses will be the less scrupulous elements of the crypto space, looking to hook in gullible marks with too-good-to-be-true projects.
The Sydney Morning Herald says that alongside banning crypto, gambling and political ads, Netflix will also not market any products to children, while it is still considering restrictions on pharmaceuticals.