Netflix considers offering a “cheap” subscription with ads

After years of refusing requests for a subscription to their service streaming with advertising, the co-founder and co-CEO of NetflixReed Hastings said on Tuesday’s earnings call that the company is “very open to offering even lower prices with advertising as a consumer option.”

Netflix considers launching low-cost, ad-supported plans

Apparently the internet content company he is now looking at the option and “trying to figure it out over the next year or two.”

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Hastings admits that the introduction of a level with advertising would be a big shift in thinking for the company, and he says he has historically been “against the complexity of advertising and is a big fan of the simplicity of subscription“.

Hastings now presents the idea of ​​an ad-supported tier as something that “makes a lot of sense” for “consumers who would like a lower price and tolerate the advertising“.

Netflix loses subscribers for the first time in more than a decade

After Tuesday’s news that he lost subscribers for the first time in a decade, Netflix seems open to a lot of things he had turned down: Co-CEO Ted Sarandos even laid out what might be needed for a long-rumored move to live sports.

Quoted by the Deadline medium, Sarandos he said, “I’m not saying we never play sports, but we’re going to have to see a way to grow a big revenue stream and a big profit stream with it,” which is a significant change from the blueprint that Netflix hasn’t previously offered.

Netflix competition, also think about advertising

Netflix it would be far from the only company to introduce an ad-supported level. competitors like HuluPeacock and even hbo max they offer plans that allow consumers to pay less (or, in Peacock’s case, nothing) in exchange for their shows being occasionally interrupted.

Disney has also announced that it will add an ad-supported option to Disney Plus At the end of the year.

Hastings also noted that he is proud of the “price differential” of Netflixbut the company’s deep market penetration means it has limited options for trying to make more money other than raising prices over and over again.

Introducing a cheaper, ad-supported tier, as well as trying to reduce password sharing, could be part of the company’s plan to increase its number of customers and introduce another source of revenue.

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