Netflix Is Considering a Lower-Cost, Ad-Supported Subscription Plan
In an interview at the Cannes Lions advertising conference on Thursday, June 23rd, during a conversation with Kara Swisher, host of the Sway podcast, Netflix’s co-CEO Ted Sarandos announced a BIG SURPRISING NEWS for the Netflix users;
That the company intends to add an ad-supported tier to its list. It was referred to as a rumor before this interview, but now, it is no longer a secret.
While the cat is out of the bag, there is still a lot that is unknown or uncertain regarding Netflix’s embrace of advertising.
Following the loss of 200,000 members, the Netflix announced the addition of a lower-cost ad-supported tier to its service in an effort to attract new users.
In the Sway Podcast, Sarandos said,
“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’”,
“We 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.’”(Via The Hollywood Reporter)
However, many Premium Service customers are unafraid of the hefty cost of the Netflix subscription. They don’t want advertising to disrupt their enjoyable hours of viewing movies, flicks, or seasons.
And so, Netflix also don’t force anyone watching ads. The firm will provide a new, lower-cost service package that includes advertising, but will continue to offer ad-free services to existing customers. Ads are on their way, but it may take some time.
An emphasis on international expansion is also incorporated into Netflix’s approach to video marketing. The company does not intend to build out local ad sales teams in each of its markets, instead relying on third parties to enable ad sales and targeting.
Netflix CEO Reed Hastings acknowledges the company’s plans to provide new cheaper subscriptions in order to compete with its rivals. The New York Times earlier reported that the corporation intends to debut the plans before the end of this year.
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