May 27, 2022
Netflix to Offer Lower-Priced Ad-Supported Subscription Plan

Netflix will Finally Add Ads as Its Subscriber Base Shrinks

Netflix CEO Reed Hastings said in the company’s Q1 earnings interview the streamer plans to offer a lower-cost, ad-supported subscription tier…

Netflix first launched its streaming service 15 years ago in 2007. At the time, nearly all subscribers were given unlimited access to certain movies and TV shows. Additionally, viewers could watch those titles without seeing ads. And, the company has prided itself on its ad-free experience for the last decade and a half. But now, that’s changing as the streamer has announced it will launch an ad-supported, lower-priced subscription plan.

Netflix to Offer Lower-Priced Ad-Supported Subscription Plan

Netflix CEO Reed Hastings revealed in an earnings call that the streaming platform will roll out an ad-inclusive version at a lower cost than its current subscription tiers. This, after starting the first quarter with 200,000 fewer subscribers and forecasting the loss of another 2 million in the second quarter.

The company didn’t reveal any details of its ad-supported offering but it did say the move is necessary in order to combat its shrinking user base. The move also comes at a time when the streaming service is attempting to shut out moochers or people who have been accessing its library without paying, which the company estimates to be about 100 million people. CEO Reed Hastings explained:

“Those that have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice. And allowing consumers who would like to have a lower price and are advertising-tolerant [to] get what they want, makes a lot of sense.”

Owen E. Richason IV

Covers social media, apps, search, and similar news. History buff, movie, and theme park lover. Blessed dad and husband.     

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