Through a press release Reed Hastings, CEO of Netflix reported that the company is currently testing ad-supported subscription plans, that will have a lower cost than the current plans of the platform.
According to Hastings, Netflix you have resisted adding ads on your platform, but if the user wants cheaper subscription plans, he will also have to deal with the ads.
(See also: Netflix suffers a deep crisis by losing 200,000 customers for the first time in 10 years)
Netflix: possible changes for cheap plans
- According to the statement, the cheap subscription plans will be launched in regarding a year.
- Hastings says that the new ad-supported plans, which will cost less than the current ones, will be beneficial to the company as they will attract many new subscribers.
- Netflix stated that rampant password sharing, competition from the other streaming giants, and the ongoing dispute between Russia and Ukraine were among the reasons there was no significant increase in paid subscriptions.
- Speaking regarding whether or not the ad-supported plans for Netflix would work, Hastings said: “It’s pretty clear that it’s working for Hulu. Disney is doing it, HBO did it. I don’t think we’ll have any problems.”
As much as I admire the simplicity of subscription, I’m a bigger fan of consumer choice, and allowing consumers who would like a lower price and tolerate to get what they want.
Reed Hastings, Director general de Netflix.
