It has been a while since Netflix announced slowing revenue growth and its first subscriber drop in over a decade. The company is looking for solutions to get out of this crisis and apparently, the only way is to add adverts to the platform. Finally, Netflix‘s Co-CEO Ted Sarandos has confirmed what has been an open secret for a while; Ads are coming…
Ads Are Officially Coming to Netflix
2022 has been a tough year for Netflix. According to Time, the company lost over 200,000 subscribers in the first three months of 2022. Now, the platform will generate more revenue by embracing ads. Netflix co-CEO Ted Sarandos confirmed on Thursday that the company would begin testing an ad-supported, lower-priced subscription tier.
The streaming company is speaking to multiple potential partners to help ease its entrance into the ad world. The list of potential partners includes Comcast, NBCUniversal, and Google. Sarandos also confirmed that the tier will be a separate offering and adverts will not start appearing on existing subscribers’ Netflix accounts. So, you are safe. Asked about adverts on the platform, Sarandos said:
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’re 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.’
He did not offer up any details about when adverts will hit Netflix, but, if previous reports are accurate, it will be before the end of 2022. So what do you think about the Netflix new tier? You can share your thoughts with us in the comments section.
Plans and Pricing for Netflix USA
|Plans and Pricing||Basic||Standard||Premium|
|Monthly cost* (United States Dollar)||$9.99||$15.49||$19.99|
|Number of screens you can watch on at the same time||1||2||4|
|Number of phones or tablets you can have downloads on||1||2||4|
|Unlimited movies, TV shows and mobile games||✓||✓||✓|
|Watch on your laptop, TV, phone and tablet||✓||✓||✓|
|Ultra HD available||✓|