Netflix exploring cheaper subscription package with ads

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Netflix exploring cheaper subscription package with ads
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Would you mind seeing ads for a lower fee?

Streaming TV viewers may start to see something they never expected on Netflix: commercials. But, it looks like desperate economic times have called for desperate measures the company has resisted for years.

After years of resisting the idea of showing advertisements on its streaming platform, Netflix addressed the idea directly during its 2022 Q1 earnings call. During the video call, Netflix Co-CEO Reed Hastings said the company is “open” to the concept of offering lower-priced tiers including ads for customers in the next year or two.

Streaming services with advertising isn’t a new concept. Hulu has offered an ad-supported subscription tier for a while and Amazon’s Freevee is a similar option. In the summer of 2021, HBO Max launched an ad-included subscription tier for $9.99 per month. In March 2022, Disney+ announced it would start offering an ad-supported subscription tier in late 2022.

Hastings told investors the financial numbers don’t lie when it comes to the success other streamers have had with ad-based subscriptions.“It’s pretty clear that it’s working for Hulu. Disney’s doing it. HBO did it,” Hastings said. “I don’t think we have a lot of doubt that it works. All those companies have figured it out. I’m sure we’ll just get in and figure it out as opposed to just test it and maybe do it or not do it.

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