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Netflix Confirms Cheaper Plans ‘With Ads’ to Lure Users

Netflix has confirmed plans to bring cheaper subscription packages with ads to lure in more users. The company’s co-CEO Ted Sarandos announced the earlier rumors in a recent interview to make its service accessible to more people.

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.”

The American OTT first teased the idea after the company lost a record 200,000 subscribers in April this year.

2022 has not been much favorable for Netflix. The prominent streamer has lost a huge number of subscribers in the first quarter. Worse, it also predicts to lose 2 million more in April – June, a record that it won’t be proud to keep.

This is due to the ongoing Russian invasion of Ukraine and the inflation. Netflix lost 700,000 subscribers after suspending the service in Russia. But it is also due to the spiraling competition in the digital platforms. For an instance, HBO added 3 million new subscribers at the same time Netflix lost its own.

And as a direct result, Netflix decided to take helpful measures.

The global crackdown is coming on users who are sharing their Netflix passwords with those beyond their families. The company has also canceled some shows as it tries to make even with the balance with the base going downhill.

Watching a Neflix show

But to regain its subscribers as well as gain more, the company may soon bring affordable subscription plans. The only caveat, those will come with ads. Anyway, the ads may not deter loyal fans of Netflix who broke up with the service only due to the subscription costs.

Also read: Nepal Government Regulates OTT & IPTV Platforms

To bring in more users

“Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription,” Netflix CEO Reed Hastings told Reuters. “But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”

And he also announced that Netflix is at work to bring affordable, ad-supported subscriptions. He shared that the budget-friendly policy could take a year or two to arrive.

Netflix’s password sharing is supported by the company itself and remains a core part of its base. However, this very nature of the service has also hurt the company’s revenues. To replenish its missing fortune, it is exploring ways to generate extra income from those who share their Netflix account password with those beyond their family.

Additionally, the company has also invested in the gaming section to generate additional revenues. This comes at no cost as Netflix wants to avoid any risk of losing subscribers and also gain some financial grounds.

When will Netflix roll out a cheaper subscription with ads?

When quizzed about when it is happening, the co-CEO didn’t reveal much. The tight-lipped Sarandos stated, “We are still in the early days of deciding how to launch a lower-priced, ad-supported option and no decisions have been made. So this is all just speculation at this point.”

But going by the estimates Hastings made earlier, the cheaper version of Netflix could arrive within a year or earlier. We won’t rule out the streaming giant expediating the plan as it has continued to struggle with the losses in recent months. Anyway, being able to watch favorite shows on the go can finally become cheaper on the popular OTT platform, and that is good news for all.

Are you a subscriber of Netflix? Would you be eager to subscribe to cheaper Netflix plans with ads? Or would you rather continue with a paid one without ads, and why? Do share with others in the comments below.

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