After years of denying the possibility of us seeing advertising on the streaming platform, Netflix is ​​accelerating its plans to launch a cheaper subscription with ads.

According New York TimesNetflix told its employees that intends to introduce ad-supported subscription to the platform by the end of the year.

The company changed its mind on its latest earnings call when CEO Reed Hastings announced that “One way to increase the price difference is to advertise on low-end plans and have lower prices with advertising. And anyone who follows Netflix knows that I was against the complexity of advertising and I’m a big fan of the simplicity of subscription. But as much as I’m a fan of it, I’m more of a fan of consumer choice.”

The introduction of ads is a big change for the streaming company and shows just how intensified the competition is.

On the earnings call, Hastings said it will be a few years before the ads produce “volume of material” – that is, pay in terms of additional revenue from price-sensitive subscribers.

Asked if Netflix would test ads in a few small markets first — which is how Netflix typically tests new products — Hastings said the company wouldn’t need to do that.

“Do not do”he replied, in response to the investor’s question about the tests. “I think it’s pretty clear it’s working for Hulu. Disney is doing it. HBO has done it. I don’t think we have much doubt that it works, that all these companies have figured out… So I think we’re really going to get in.”

Subscription with advertising will arrive “along with our broader plans to charge for sharing [la cuenta con otras personas]».

In its first-quarter earnings report, Netflix had informed investors of the loss of 200,000 subscribers in the first three months of 2022, which helps explain why the company plans to charge members who share passwords.


Please enter your comment!
Please enter your name here