There were rumors’ that Netflix was looking at the possibility of adding advertisements back in May, and now official confirmation has arrived. Ted Sarandos, the CEO of Netflix, has stated that the company intends to add an ad-supported plan to its line-up of subscription packages.
The streaming service’s CEO acknowledged during an interview with The Hollywood Reporter that it intends to add an ad-supported tier to Netflix. “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’”, he added
In the beginning, Netflix co-CEO Reed Hastings stated during the company’s April earnings call that the video streaming service will investigate ad-driven alternatives to the current plans over the “next year or two.” For those who are unaware, the corporation recorded a significant decline in customers of 200,000 from the fourth quarter of the prior year to the first quarter of 2022.
Netflix desperately needs more subscribers. The company revealed that it has around 2 lakh paid subscribers during an earnings call. The company’s revenue growth has been hindered by the decline in paid members. That is also one of the reasons the business let go of close to 300 workers in less than six months. The ad-supported plans, though, can help the corporation immediately because they are predicted to be less expensive.
That is the reason Netflix wants to investigate more possibilities so it can draw in a variety of viewers. Apart from this, little is known about the new offering’s arrival date and detailed implementation strategy.
In a statement to its workforce in May, Netflix stated that it expected its employees to work on programs they might not agree with. It said, “Depending on your role, you may need to work on titles you perceive to be harmful. If you’d find it hard to support our content breadth, Netflix may not be the best place for you”.
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