New Delhi. To attract more subscribers, Netflix may soon introduce cheaper plans. Netflix had reported that it has lost nearly 2 lakh followers in the last one year. The streaming giant has also laid off over 300 employees due to slow revenue growth. The reason most paid customers have unsubscribed from the app is because of cost. Consumers are willing to tolerate ads, but want subscription plans to cost less. There are other factors like password-sharing that have added to the company’s woes. However, Netflix certainly knows how to turn the tables as the company is now planning to offer affordable ad-supported plans.
Netflix CEO Ted Sarandos confirmed during an event that Netflix will roll out ad-supported plans sooner than expected. Sarandos shared the company’s plan to introduce an ad-supported level in an interview at the Cannes Lions advertising event, The Hollywood Reporter confirmed. A report in The New York Times had earlier confirmed that the company plans to launch the device by the end of this year.
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“We’ve left a huge subscriber segment off the table, people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” Sarandos said Thursday during the Cannes Lions Stage with Self podcast . Host Kara Swisher. “We are adding an advertising tier; We are not adding ads to Netflix as you know it today. We’re adding an ad tier for people who say, ‘Hey, I want a lower price and I’ll watch the ad.'” Interestingly, the company’s CEO Reed Hastings has revealed that the ad-supported tiers are a Will be added in a year or two, but the company is trying to flesh out the plans as soon as possible.
Hastings said during an interview that although he prefers ad-free plans, he doesn’t want to be oblivious to consumer demands. According to him, subscribers want cheap plans even though the plans are full of advertisements. He revealed that the company’s decision to introduce ad-supported affordable plans was driven by the success seen by Netflix’s rivals such as HULU, Disney, HBO and others.
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“I think it’s pretty clear that it’s working for Hulu, Disney is doing it, HBO has done it. I don’t think we have much doubt that it works, that all those companies have done it. I’m sure we, Hastings said, I’ll just come in and figure it out as opposed to testing it and probably do it or not.
Interestingly, many rivals of Netflix in India offer cheaper ad-supported plans. Streaming companies like Disney+ Hotstar, Zee5, Voot and MX Player offer ad-supported subscription plans to consumers.
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