Netflix ad-supported subscription plans: We weren’t imagining things; Netflix has verified that ad-supported membership tiers are indeed coming shortly. The Hollywood Reporter says that in an interview at the Cannes Lions advertising conference, CEO Ted Sarandos acknowledged the company’s plans to launch an ad-supported tier to its roster. The corporation is expected to introduce the plans before the end of the year, as was previously reported by The New York Times.
Netflix really needs to increase its subscriber base. During an earnings call, the firm boasted that it had nearly 2 million paying customers. Revenue growth has been stifled as a result of a decline in the number of paying customers. It’s also a contributing factor to the fact that the corporation has let go of about 300 workers in the past six months. The ad-supported plans, though, may help the business out right now because they are likely to cost less.
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People who remark, “Hey, Netflix is too costly for me and I don’t mind advertising,” are not being considered as potential customers. Sarandos made the comment Thursday on stage with Kara Swisher, host of the Sway podcast. We are not bringing traditional banner adverts to the Netflix service. For those of you who have said things like, “Hey, I want a lower price and I’ll watch advertising,” we’ve created a new tier that includes advertisements.
Nearly 222 million people subscribe to Netflix, making it the largest streaming powerhouse. However, a significant drop in paying members during the first quarter of 2022 has hurt the firm. The subscription drop has dealt a severe damage to the business, and it is still striving to recover. Many people working for Netflix have lost their employment as a result of the disruption to the company’s operations. Netflix has “unfortunately let go of 300 employees,” as reported by The Variety.
The majority of the job cuts identified in the research have occurred in the United States and have affected various industries. There are about 11,000 people working for Netflix. So, around 2% of its employees has been affected by the most recent wave of layoffs.
A Netflix spokesperson said in a statement on Thursday, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.” We appreciate all they’ve done for Netflix and are doing everything we can to help them out at this challenging time. Netflix ad-supported subscription plans would be fun in future.
