Like many streamers these days, Netflix now offers an ad-based tier for subscribers. While this plan is still new to the streaming platform, the company’s co-CEO, Ted Sarandos, explained that Netflix is expected to have even more ad-supported plans in the future.
This fall, Netflix has launched an ad tier that costs $6.99 one month in collaboration with Microsoft. As for the potential for further plans, Sarandos explained at the TMT USB conference, via CNBC What:
We’re tiered right now, so we’ll probably have more ad tiers over time, but nothing to say right now. And the product itself will evolve, I imagine, quite dramatically, but slowly, incrementally.
Currently, the available ad level is just below its competitor’s ad levels, as the article says, there are also three other ad-free plans on Netflix. When the advertising plan was announced, there was a misunderstanding that everyone would receive publicity However, that’s not the case, Netflix just added another option for subscribers. If users turn on the tier, they’ll see about four to five minutes of ads for every hour of content, I can’t download anything and the content library is limited .
Despite huge record shows like Strange things Season 4 and the second season of BridgertonAccording to CNBC, Netflix has been under pressure to find new ways to boost revenue as subscriber growth has slowed.
Netflix’s other co-CEO Reed Hastings explained last week that the streamer was wrong about the popularity of the ad-supported plans, admitting he wishes they had “changed a few years earlier.” He also said they would “catch up” their competitors. Based on Sarandos’ comments, it appears that one way to catch up is to offer multiple tiers of ad-supported plans.
Currently, Netflix has four types of subscriptions . The new ad plan costs $6.99 per month and is the cheapest of the tiers. The other three are the Basic plan at $9.99/month, the Standard plan at $15.49/month, and the Premium plan at $19.99/month. So, if they do any other ad plans, I’d be curious to see if they do a plan with more ads, which could make you less than $5 a month. Perhaps they would also try offering a free plan like Peacock does, where viewers have a limited library and ads, but can still use the streamer.
Sarandos also explained that in 2023 they will continue work on password sharing control . According to the article, Netflix has released data indicating that 30 million households use a shared password.
All of these new efforts, between the advertising plan (and future advertising plans) and the crackdown on password sharing, are an effort to keep up with the competition. Hulu has long had an ad-based plan, Disney+ launched an ad tier this month, HBO Max made the move last year, and new streamers like Paramount+ and Peacock are also offering ad options.
So, in the ongoing streaming wars, it only makes sense for Netflix to strive to outpace the competition with its new level of advertising and perhaps even more business plans in the future.
Source: Cinemablend
