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Netflix to Offer New Subscription Plan That Will Feature Ads
Netflix has announced that the streaming giant will offer a new subscription plan that will feature advertisements.
In a recent interview with The Hollywood Reporter, CEO Ted Sarandos confirmed the company plans to create a new ad-supported option for customers.
This new tier will come in at a lower price for those who don’t mind advertisements and still want to stream content with the service.
We want to know what you think of Netflix offering an ad-supported plan. Let us know your thoughts in the comments below!
Sarandos commented on the situation during an interview with Kara Swisher for the Sway podcast:
We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,
We adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.
Netflix has had its fair share of struggles this past year.
It increased prices for the first time since 2020 and saw a substantial loss in overall subscription numbers.
Netflix Expects to Lose Millions of Subscribers in 2022
It has also begun cracking down on password sharing which many have shown strong opposition to.
However, it looks to improve its customer base by giving users a more affordable package subscription.
We’ve seen other streaming companies take this same approach by offering various subscription tiers including one with ads.
HBO Max, Peacock, and Hulu all offer both an ad-free and ad-supported version of their membership to help gain more subscribers.
Sarandos noted the changes the company has seen this year and its outlook for the future:
We’ve gotten through experiences where the market disconnects from [our] core business and you have to prove the thesis still works, and is going to work long-term. There’s a lot of uncertainty in the world today, and if they get anything that rocks the foundation of the narrative, they get nervous.
These changes are likely to occur towards the end of 2022, however, a confirmed date for the release of this tier is not yet available.
It will be interesting to see how well this new option will do for Netflix with so many competitors now in the streaming space.
Let us know what you think of this situation in the comments below!
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When Netflix started sending dvds thru the mail, I wish I put $1000 on their stock. They destroyed the brick and motor stores. Now the internet where they built their business is now threatning them with competition. Motley fool investments claim the next cord cutter will be a hit. I remember when satilite and cable fist came out, suppose to have no comercials. In fact Dish what used to be echostar?, was free. I don’t pay for any movie channels because the same old reruns every month. Until Troy came around, the red box was the best deal for me.
It all depends on what the price is going to bed and if we even get it in Canada. I’m used to the ads on the free devices. I j just don’t like the random way that they’re done. On regular tv there is a transition and you know the commercial is coming. On free video services the commercial can come at any time. It can be jarring.
No Ads if Ads will cancel Netflix
I left Netflix. Because they started to get to expensive for to little shows barley changed in Canada and we got to little to begin with. I charged my DNA on my system got the American Netflix and I was like OMG they got 100 × more stuff .so was upset and said enough was enough. I will never subscribe to Netflix again
Ready to see the next movie trendsetter company get bounced off the throne. No monopoly. More options made available and education provided by the internet today that greatly helps, but primarily this from Troy. Thank you very much.
If Netflix only lowers the price for commercial supported subscription then I’ll continue to pay for no commercial service. But, if they raise my rates for not accepting commercial service I’ll cancel the subscription.
I really don’t care what Netflix offers as they are too expensive for what you get. I have a very stable streaming provider, plus with Syncler and Kodi I don’t need anything more. Thanks Troy for all you do.
If it gives ads it should be free because I would think they will charge to advised on Netflix.
Makes sense…throw a few ads in and keep rates down. BUT for heaven’s sake don’t repeat them over and over again…GRRRRRR!
Hi all,
Just wanted to add that Paramount + also offers subscriptions with ads and without ads. I use both Paramount+ and Peacock, both with the ads, mainly because I live in an area where i can’t get local broadcasting channels. Antennas are not close enough etc. And, it’s within the price range.
My husband likes to watch Football, so by subscribing to those two apps, plus having Amazon Prime, he can catch some football games. And it’s all legal. I don’t need to worry about my isp threatening me.