Like many streaming programs these days, Netflix now offers an ad-based tier to subscribers. While this plan is still new to the streaming platform, company co-CEO Ted Sarandos made it clear that Netflix will likely have more ad-supported plans in the future.
this fall, Netflix has released an ad layer that costs $6.99 month in partnership with Microsoft. Regarding the possibility of more plans, Sarandos explained at the USB TMT conference via CNBC which – which:
We have multiple levels today, so we’ll likely have multiple ad levels over time, but nothing to talk about yet. And the product itself will develop, I think, very much, but slowly, gradually.
Currently, the ad tier available is priced just below its competitor’s ad tiers, and as the article mentioned, there are also three other plans on Netflix that are ad-free. When the ad plan was announced, there was a The misconception that everyone will get adsHowever, that was not the case, Netflix simply added another option for subscribers. If people choose to subscribe to the tier, they’ll see about four or five minutes of ads for every hour of content, hmm Nothing can be downloaded and the content library is limited.
Although there is huge Record-breaking shows like Weird things Season 4 And the second season of BridgertonAccording to CNBC, Netflix has faced pressure to find new ways to increase revenue since subscriber growth has slowed.
Reed Hastings, another co-CEO of Netflix, explained last week that the operator was wrong about the popularity of ad-supported plans, and admitted that he wished he had “flipped a few years ago.” He also said that they would “catch up” to their competitors. Based on Sarandos’ comments, it appears that one way they can catch up is by offering multiple tiers of ad-supported plans.
Currently, Netflix has four types of subscriptions. The new Ad plan costs $6.99 per month, which is the cheapest tier. The other three are the Basic plan for $9.99 per month, the Standard plan for $15.49 per month, and the Premium plan for $19.99 per month. So, if they put out other ad plans, I’d be curious to see if they put out a plan with more ads, it could make less than $5 a month. They might even try to offer a free plan like Peacock, where viewers have a limited library and ads, but can still use the streaming device.
Sarandos also made it clear that they will continue into 2023 Work on controlling password sharing. According to the article, Netflix has published figures that 30 million households use a shared password.
All of these new efforts, between the advertising plan (and future advertising plans) as well as the crackdown on password sharing, in an effort to keep up with competitors. Hulu has offered an ad-based plan for a long time, Disney+ implemented an ad category this month, HBO Max made the move last year, and newer streamers like Paramount+ and Peacock also offer ad options.
So, in the ongoing streaming wars, it only makes sense that Netflix would work to outpace its competitors with a new ad tier and perhaps even more commercial plans in the future.
[ad_2]
