Netflix may soon provide lower options in an effort to entice more members. Netflix has revealed that it had lost close to 2 lakh followers in the last one year. The streaming behemoth has recently let rid of more than 300 staff owing to poor revenue growth. The reason why most paying members have unsubscribed the app is because of the expense. Customers can tolerate some advertising, but they would prefer cheaper subscription options. There are additional problems like password-sharing that has added to the company’s troubles. However, Netflix clearly knows how to turn the tables since the business is now going to launch ad-supported lower tiers.
Netflix CEO Ted Sarandos said during an event that Netflix will roll out ad-supported plans sooner than planned. Sarandos had discussed the company’s plans of establishing an ad-supported tier in an interview at the Cannes Lions advertising conference, The Hollywood Reporter verified. A report from The New York Times earlier indicated that the corporation is preparing to debut the plans before the end of this year.
Also Read: Netflix ad-supported subscription plans to roll out soon
“We’ve left a major consumer sector off the table, which is those who say: ‘Hey, Netflix is too costly for me and I don’t mind advertising,’” Sarandos remarked Thursday, addressing the Cannes Lions stage with Sway podcast presenter Kara Swisher. “We are adding an ad tier; we’re not bringing commercials to Netflix as you know it now. We’re launching an ad tier for those who say, ‘Hey, I want a cheaper price and I’ll watch ads.’” Interestingly, firm CEO Reed Hastings has indicated that the ad-supported tiers will be implemented in a year or two, but the business is aiming to get the ideas out as quickly as feasible.
Hastings remarked during an interview that although he likes plans that are ad-free, he does not desire to be ignorant to the consumer’s expectations. According to him, customers don’t care whether their plans are full with adverts as long as they’re inexpensive. He said that the success of Netflix’s competitors like HULU, Disney, HBO, and others was a major factor in the company’s decision to create ad-supported cheaper options.
“Since Hulu, Disney, and HBO have all adopted the strategy, it seems safe to assume that it has been successful for the streaming service. I don’t believe there’s much of a doubt in our minds that it works and that those businesses have cracked the code. Instead of testing it and perhaps doing it or not doing it, I have no doubt we’ll simply go in and find it out “To paraphrase what Hastings really said.
Netflix’s competitors in India, interestingly enough, all provide cheaper ad-supported options. Disney+, Hotstar, Zee5, Voot, and MX Player are just a few of the streaming services that provide ad-supported subscription options to its customers.
