A new report gives further insight into Netflix's plan to include an ad-supported subscription tier at a lower price tag.
A new report shed reveals additional details about Netflix's advertisement plans. Netflix originated as a DVD rental company before moving into the streaming circuit in 2007. Currently, the company competes with several prominent streaming platforms, including Hulu, Disney+, Apple TV+, HBO Max, and Amazon Prime. As the streaming wars escalate, it seems even Netflix may not survive without the help of additional revenue.
For years, Netflix remained the most popular streaming service by a fair margin. At the start of 2022, Netflix boasted an incredible 221.84 million subscribers. In April, however, Netflix reported subscriber loss amounting to 200,000. Subsequently, Netflix has been looking into other ways to increase its subscriber count and prevent future subscriber loss.
“Any distributor being approached by Netflix is going to take steps to ensure they get proper value.” “We are still in the early days of deciding how to launch a lower-priced, ad-supported option, and no decisions have been made.” Inside details on Netflix's internal operations have been historically kept obscure. With the report of its massive subscriber loss this April, one thing is clear: Netflix will have to make changes to regain the powerhouse status it has maintained for years. That restructuring will come at a cost to the company, which will need to pay the premiums to content providers to play the content on their platform.
However they end up getting there, Netflix seems to have big ambitions for the launch of the ad-supported platform. Netflix has reportedly told content suppliers that they would like an ad-supported program up and running by as early as the end of 2022. If Netflix creates the ad-supported option, it will be in good company. Hulu's most basic plan still has an ad-supported option.
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