Netflix To Soon Introduce Ads and Cheaper Subscription Plans, Know Details



Netflix To Soon Introduce Ads and Cheaper Subscription Plans, Know Details

After remaining free from ads and commercials for users, Netflix Co-CEO Reed Hastings has said the video streaming platform is now open to offering cheaper and ad-supported tiers in order to boost its subscriber base. However, add-free plans will continue to be there on the platform, he added.

The company reported a loss of two lakh subscribers for the first quarter. Listing various factors affecting its growth in the first quarter of 2022, it said account sharing, competition and macroeconomic factors such as sluggish economic growth, increasing inflation, geopolitical events such as Russia’s invasion of Ukraine, and some continued disruption from COVID-19 are inter-related factors at work.

On the commercials, Hastings during an earnings call on Tuesday said: “Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription… But, as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense,” he added.

A lower-tier option that includes advertisements could keep some price-conscious consumers with the service and provide Netflix with a different avenue to garner funds. “It’s pretty clear that it’s working for Hulu. Disney is doing it. HBO did it,” Hastings said. “I don’t think we have a lot of doubt that it works.”

The company, which has about 222 million paying customers, has been asked repeatedly over the years if it would ever be considering bringing advertisements to its platform. It has always declined.

Hastings has long been opposed to adding commercials or other promotions to the platform but, during the company’s earnings call, said it “makes a lot of sense” to offer customers a cheaper option… Read More

Source By : news18

 

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