Netflix to introduce cheaper subscriptions supported by advertising
"Allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense"
By Nick Reilly
Netflix has announced fresh plans to introduce less expensive subscription plans, supported by new advertising.
The move comes after the streaming giant lost 200,000 subscribers during the first quarter, a contrast to plans for it to add 2.5million subscribers across the start of 2022.
As The Hollywood Reporter states, the plans will be rolled out “over the next year or two” – with Netflix COO Greg Peters hailing advertising as “an exciting opportunity for us”.
“Those who have followed Netflix know that I have been against the complexity of advertising, and a big fan of the simplicity of subscription,” Netflix co-CEO Reed Hastings said.
“But as much as I am a fan of that, I am a bigger fan of consumer choice. And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.”
“In terms of the profit potential, definitely the online ad market has advanced, and now you don’t have to incorporate all the information about people that you used to,” Hastings went on.
“We can stay out of that, and really be focused on our members, creating that great experience.”
One of the platform’s most popular shows, Stranger Things, will make its return for the final season next month. Vol.1 will premiere on May 27 and Vol.2 arrives on July 1.
It will see the return of Millie Bobby Brown as telekinetic youngster Eleven, alongside Finn Wolfhard, Winona Ryder, Gaten Matarazzo, Noah Schnapp, Caleb McLaughlin, Natalia Dyer, Noah Schnapp, Sadie Sink, Maya Hawke and Charlie Heaton.