Netflix, the streaming giant, has made a big announcement. They’re introducing a brand-new subscription plan that includes advertisements.
CEO Ted Sarandos recently confirmed this in an interview with The Hollywood Reporter. The company is developing a new ad-supported option for its customers.
This new tier will be priced lower. It’s designed for those who want to stream content on the platform but don’t mind watching ads to save money.
What do you think about Netflix’s decision to offer an ad-supported plan? We’d love to hear your thoughts in the comments below!
During an interview with Kara Swisher on the Sway podcast, Sarandos shared his thoughts on this new plan:
We’ve been missing out on a significant customer segment. These are people who feel that Netflix is too expensive but are okay with watching ads.
We’re introducing an ad-supported tier, but we’re not adding ads to the existing Netflix experience. This new tier is specifically for those who want a lower price in exchange for watching ads.
Netflix has faced its share of challenges over the past year. They increased prices for the first time since 2020, a move that resulted in a noticeable decline in overall subscription numbers.
Netflix anticipates losing millions of subscribers in 2022.
The company has also started cracking down on password sharing, a decision that has faced significant resistance from users.
However, it seems Netflix is aiming to broaden its customer base by introducing a more budget-friendly subscription package. This strategy aligns with what we’ve seen from other streaming services.
Several other streaming companies, like HBO Max, Peacock, and Hulu, offer multiple subscription tiers, including ad-supported options. This approach helps them attract a wider range of subscribers.
Sarandos reflected on the changes Netflix has undergone this year and the company’s future prospects:
We’ve navigated periods where the market’s perception differed from our core business. In those times, we had to demonstrate that our model is still valid and will remain viable in the long run. There’s a lot of uncertainty in the world right now. If anything shakes the foundation of that narrative, people tend to get nervous.
These changes are expected to roll out around the end of 2022. A specific date for the launch of the ad-supported tier has not yet been announced.
It’ll be fascinating to see how this new option performs for Netflix, especially given the fierce competition in the streaming market.
What are your thoughts on this development? We’d love to hear your perspective in the comments section below.
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