Everyone is asking, “Is Netflix adding commercials?” Netflix lost subscribers, but it expects to gain them back with a new more affordable plan that includes ads. Netflix co-founder and co-CEO Reed Hastings said on Tuesday’s earnings call that the company is “quite open to offering even lower prices with advertising, as a consumer choice,” after years of rejecting calls for an ad-supported streaming tier.
Is Netflix adding commercials?
Hastings revealed that introducing an ad-supported tier would significantly change the firm’s thinking, stating that he’s been a “big proponent of subscription simplicity.”
Netflix lost subscribers: What can they do about it?
Currently, Netflix charges $10 monthly for the basic plan, $15.49 per month for the standard plan, and $20 per month for the premium plan. These rates were increased in March by the firm. At the meeting, Hastings says he’s proud of Netflix’s “price spread,” but as we previously noted, because to its broad market penetration, the firm has few alternatives to try to earn more money outside of raising prices again and again. Introducing a cheaper, ad-supported tier and attempting to reduce password sharing might be part of the company’s strategy to boost its number of customers and create another source of income.
Why Netflix lost subscribers for the first time in a decade?
Netflix isn’t the first company to offer an ad-supported plan. Hulu, Peacock, and even HBO Max provide subscriptions that allow users to pay less (or in Peacock’s case, nothing) in exchange for having their programs occasionally interrupted by advertisements. Disney has also confirmed that Disney Plus will offer an ad-supported version by the end of the year.
