Netflix revealed that it is considering an ad support base with a lower subscription fee on the day it reports the loss of subscribers for the first time in more than 10 years.
Netflix co-founder and co-CEO Reed Hastings was revealed in a conference call with investors on Tuesday, April 19.
Hastings admitted that his opposition to the ad-supported demographics was well documented, but his strong belief in consumer choice could, after all, turn him back. Told. Witnessing the spill of 200,000 subscribers in the three months leading up to March 31 may also have prompted him to accept the idea.
“People who follow Netflix know that I’m against big fans of advertising complexity and subscription simplicity,” Hastings said. “But I’m a big fan of that fan as well as a big fan of consumer choice, and it’s very much possible for consumers who want low prices and are tolerant of advertising to get what they want. It makes sense. “
However, Hastings added that the services supported by the ads are likely to be unavailable for at least a year. So for now, subscribers are sticking to paying $ 10 a month for the base tier, $ 15.50 for the standard tier, and $ 20 for the premium service. ..
Rivals such as Hulu and Peacock already offer ad support options, but Disney + recently announced that they will. Add a hierarchy supported by your ad It will be rolled out internationally in 2023 for US-based customers later this year. Amazon Prime, on the other hand, bundles many other services with its own video streaming service, which currently costs $ 139 a year for the entire package. Apple TV + does not have an advertising support plan and subscribers are required to pay $ 5 per month.
Hastings also said Tuesday that Netflix expects to lose another two million subscribers this quarter. He has attributed his losses to many factors, including intensifying competition with rivals, the war in Ukraine, and password sharing. Currently, 100 million households are engaged..
He added that the surge in applications during the pandemic “covered the big picture” as people began to go out more following the deployment of the vaccine.
The success of Netflix’s ad support services depends primarily on the amount your company charges and your ability to maintain a compelling content library that outperforms or at least matches what your competitors offer.
Are you planning to cancel Netflix? Method is as follows.. Or, if you’re a completely enthusiastic Netflix subscriber and you’re looking for something to watch, check out Digital Trends. April Top 50 Movies..
https://www.digitaltrends.com/movies/netflix-considering-ad-supported-tier-at-lower-price/ Netflix is considering a hierarchy that supports ads at a low price