Netflix: new subscription option would be cheaper and with ads

Netflix plans to launch a new modality of its content service in ‘streaming’ with a reduction in the subscription price in exchange for including advertisements on the platform “in a more integrated and less interrupted way”.

The company’s co-CEO and Director of Content, Ted Sarandos, announced within the framework of the Cannes Lions International Festival of Creativity that the company works on a new tariff to attract subscribers who want to pay less for the same content.

According to media such as The Hollywood Reporter, Sarandos has shown his concern for those users who decide not to subscribe to the platform due to these prices.

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“Until now, we have left off the table a large segment of customers who think that Netflix is ​​too expensive for them and who do not mind watching ads,” said the manager in his speech.

To solve this problem, the executive director of Netflix has assured that the platform seeks to design an advertising experience “more integrated and less interrupted” than traditional television advertising, according to The Wall Street Journal.

To do this, the company would have proposed to create a cheaper modality, with ads and without modifying the one already present, since none of its current subscription plans present advertising interruptions during the transmission of its contents.

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It is not the first time that Netflix managers have spoken about the possibility of launching an additional offer with ads, an option that was already suggested by another coCEO of the platform, Reed Hastings, a few months ago.

During a conference call with analysts, Hastings admitted that the company was studying the launch of a lower cost planwhich would include the viewing of advertisements.

“It’s not a short-term solution, because once you start offering a lower-priced plan with ads as an option, some consumers take it. And we have a large installed base that is probably very happy where it is,” the executive said, noting that, in terms of profit potential, the online advertising market has advanced.

Source: Elcomercio

James

I have worked as a journalist for over 10 years and have written for various news outlets. I currently work as an author at 24 News Recorder, mostly covering entertainment news. I have a keen interest in the industry and enjoy writing about the latest news and gossip. I am also a member of the National Association of Journalists.