Written by: Alessandra Motisi – Publication date: 10 hours ago
Netflix CEO Ted Sarandos recently confirmed that An ad-supported plan with a lower subscription cost will be introduced soon:
“We have discussed a large portion of customers, which are those who say, ‘Hey, Netflix is too expensive for me, and I don’t mind advertising.’ We will add advertising, but not Netflix as you know it today.”
In recent months, reports have emerged on an ad-supported subscription, of which the CFO of Netflix Spencer Neumann he has declared:
“Never say never … It’s not that we’re against advertising, to be clear. We rely on the consumer experience, consumer choice and what our creators and storytellers like. Advertising is not something that is in our own. plans right now. We have a great subscription model. “
This came shortly after Netflix was reported to have failed to meet its subscriber target for Q4 2021. The streaming service had added 8.28 million subscribers. below the company’s 8.5 million projection and Wall Street’s 8.3 million estimate. Weaker performance was also expected in the first quarter of 2022 due to the pandemic and increasing competition. Netflix he has evidently considered a variety of options for increasing earnings: In 2022, the streaming service test launched additional charges to address password sharing, something it had previously turned a blind eye to.
It should be noted that Netflix isn’t the first streaming service to announce ad-supported subscriptions – Mickey’s platform has also announced an ad-supported plan. Kareem Daniel of Disney + had stated:
“Expanding access to Disney + to a wider audience at a lower price is a win for everyone – consumers, advertisers and our storytellers … More consumers will be able to access our great content. Advertisers will be able to reach larger audiences. broad and our storytellers will be able to share their incredible work with more fans and families. “
Commenting on the announcement, Ashwin Navin – CEO and co-founder of a data analytics company – said:
“Netflix’s entry into ad-supported plans instantly changes the CTV landscape and signals a win for consumers, advertisers and their bottom line. Creating a new ad-supported subscription gives consumers more choice and flexibility in the market. This move is also a boon for advertisers, as it unlocks unprecedented amounts of new inventory and creates arguably the largest ad influx in TV advertising history. Finally, adopting such a subscription is ultimately a win for Netflix. as it generates a whole new revenue stream and monetizes password sharing. “
Source: CBR
