Netflix is all set to roll out its ad-supported subscription plans. It is confirm by the company CEO Ted Sarandos in an interview at the Cannes Lions advertising festival, The Hollywood Reporter confirmed. Earlier, a report in The New York Times had also confirmed that the company is planning to launch the plans by the end of this year
Netflix is in dire need of new subscribers. The company, during an earnings call, announced that it had close to 2 lakh paid subscribers. The slump in paid subscribers has stunted the revenue growth of the company. That is also one of the reasons why the company has parted ways with close to 300 employees in a matter of six months. However, the ad-supported plans can make things a little better for the company now which is going to be cheaper.
“We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,’” Sarandos said. “We [are] adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.’”
There are speculations that the streaming service will launch an ad-supported subscription tier for its service ever since its other co-CEO Reed Hastings said he’d be open to the idea in April.
Netflix is already in talks with ad-sales partners,
and while Sarandos did not provide details on when the ad-supported tier might come out, Netflix has told employees internally that it is aiming for a launch before the end of 2022.
The Basic Netflix plan will cost you $9.99. It offers 480p streaming, while the Standard plan will cost you $15.49 for a 1080p resolution. Netflix’s most expensive Premium plan, priced at $19.99 per month, is the sole tier that offers 4K HDR streaming. Netflix is the only streaming service that charges extra for improved streaming quality, and the ad-supported tier would presumably offer streaming quality similar to the Basic plan.
In addition to offering an ad-supported tier,
Netflix is planning on cracking down on account sharing. In select countries, Netflix has been testing an extra payment for those who share their Netflix accounts with people outside of their households.
Netflix is currently the largest streaming giant with close to 222 million subscribers, but the loss in paid subscribers in the first quarter of 2022 has impacted the company in a huge way. The company is still trying to come out of the blow caused by the subscriber loss. It has not only impacted the business of the streaming giant, but so many employees had to let go of their jobs at Netflix.
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