After years of being against it, Netflix could launch a cheaper ad-supported plan in the next couple of years. In an Interview on the Q1 2022 earnings call, Netflix Co-CEO Reed Hastings said that the company is now open to low-price ad-supported plans.
Hastings also agrees that bringing an ad-supported plan will be a big change in Netflix’s thinking. He himself has always been against the complexity of ads and has been a fan of the subscription model.
Netflix ad-supported plan
Hastings says this tier makes a lot of sense for all the customers who want lower prices and can tolerate occasional ads. However, he hasn’t confirmed anything about the pricing of the said plan.
You might be wondering why all of a sudden Netflix is open to introducing advertisements. The real reason lies in the Netflix Q1 earnings report. For the first time in the last decade, Netflix has lost subscribers. Not just that, Netflix prices have been gradually rising over the last couple of months.
In Q1 2022, Netflix has lost 200k subscribers. The company itself is forecasting to lose another 2 million subscribers in the current quarter. Due to subscriber loss, it isn’t able to increase revenues. All of this is leading to a situation where there is no other option than to add a new ad-supported plan.
It is not confirmed when and if the plan will roll out, but Netflix is looking into this option. We might see ads on Netflix in the coming year. Would you subscribe to a Netflix plan with ads? Do let us know in the comments.
Find your dream job