Netflix‘s lower-cost ad-supported plan might be available before the end of the year, most likely after October, putting it ahead of schedule. According to a story in The New York Times, the streamer informed staff of the intention to create an ad-supported version.
Netflix recently announced sluggish revenue growth and its first membership decrease in over a decade, and the ad tier is part of the company’s efforts to reverse those trends.
Netflix’s lower-cost ad-supported plan might be available before the end of the year, most likely after October, putting it ahead of schedule. According to a story in The New York Times, the streamer informed staff of the intention to create an ad-supported version.
Netflix recently announced sluggish revenue growth and its first membership decrease in over a decade, and the ad tier is part of the company’s efforts to reverse those trends.
This will-Netflix-have-ads-in-the-future discussion has been going around for a long now.
Netflix with advertisements may appear to be an oxymoron, but the ad-free experience is at the core of its DNA — the distinguishing characteristic that sets it apart from the competition.
Netflix’s effort at ad-supported subscription streaming video might become a reality after October. After losing 200,000 net users globally and projecting another 2 million in the current quarter, the streaming powerhouse said last month that it was considering the move.
Netflix officials claimed in the memo that they expected to debut the ad tier in the last three months of the year, according to two people who provided sections of the message as part of internal business debates. The message also claimed, according to the sources, that they wanted to reduce password sharing within their subscriber base around the same time.
After years of publicly saying that advertising would never be visible on the streaming platform, Netflix surprised the media world and Madison Avenue by announcing that it will begin providing a lower-priced membership with adverts.
However, Netflix is suffering serious financial difficulties. Netflix stated last month that it lost 200,000 customers in the first three months of the year, the first time that has happened in a decade and that it expects to lose another two million in the months ahead. Netflix’s stock has plummeted since the subscriber announcement, wiping off about $70 billion from the company’s market capitalization.
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