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HomeNewsNetflix Is Open to a Lower Price Tier -- With Ads

Netflix Is Open to a Lower Price Tier — With Ads

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Among declining subscriber amounts in the first quarter of 2022, its first prospect drop in a decade, and a more competitive buffering landscape, Netflix is considering ad-supported price tiers. Co-CEO Reed Hastings discussed the change during the company’s quarterly investors’ earnings interview on Tuesday.

After COO Greg Peters tackled the latest price hike for membership plans, Hastings contributed that Netflix is looking at ways to offset the cost for users. If it really does make such a move, Netflix would be one of the last big streaming services to get into the ad game.

“One way to raise the price spread is advertising on low-end plans, ” Hastings said. He identified that historically, your dog is been against the notion of bringing in advertisers but has since changed his perspective for consumer choice.

“Allowing consumers who would like to have a lower price — and are advertising tolerant — get what they want, makes a great deal of sense, inch Hastings said. “Think of us as quite open to offering even lower prices with advertising as a consumer choice. “

Observing how Netflix offers film, tv set and gaming content, the company’s goal is to bring more value to members while opening the doorway for marketers to get to audiences enthusiastic about goods. Rather than go through a testing phase, Hastings envisions that the business will jump in it.

“It is quite clear that it is working for Hulu. Disney is doing it. HBO did it. I actually don’t think we have a great deal of doubt that it works, inch he said. “All those companies have figured it out there. I’m sure we will just get in and figure it out. inch

Hastings compared the suggested plans to be similar to Hulu, which provides members the option to keep their higher-priced, ad-free plans or decide for a less costly subscription that includes commercials. One major difference would be Netflix won’t indulge in data checking.

There’s no defined timeline, but is actually on the schedule to be investigated — and possibly implemented — within the next yr or two. Netflix and Apple TV SET Plus are among the list of few major buffering services that have no commercial interruptions.

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