Get Netflix subscription cheap! But there is a catch

Netflix is rolling out a new cheaper, ad-supported subscription for those who find It too expensive. Here’s more about it.

| Updated on: Aug 22 2022, 13:28 IST
Netflix is rolling out a new ad-supported tier which will be priced lower. (Pixabay)
Netflix is rolling out a new ad-supported tier which will be priced lower. (Pixabay)

What has been known for long has now been confirmed. Advertisements are coming to Netflix; Co-CEO of Netflix Ted Sarandos has confirmed.

According to Hollywood Reporter, Back in March, Netflix Chief Financial Officer Spencer Neumann was asked about an ad-supported tier when he said “never say never” but immediately made it clear that the move was "not something in [the brand's] plans right now."

A few weeks ago, a leaked internal memo revealed that Netflix officials were telling people to prepare for the launch of the ad service which was expected to arrive by the end of this year.

Now, Netflix's Co-CEO Ted Sarandos, speaking at the Cannes Lion Festival has confirmed that an ad-supported lower-priced tier is arriving soon. He 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 are 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.”

Sarandos confirmed that ads will not affect your existing subscription and will only appear in a separate, lower-priced tier.

Netflix is facing great financial losses this year. The company reported a loss of almost 200,000 subscribers in the first three months of 2022 and projected even bigger losses in the coming months. As a result, Netflix's stock price has plummeted more than 70 percent this year, losing almost $70 billion in its market value.

This move could encourage people who have never tried Netflix to give it a go. It might also prevent people from being priced out of the rising subscription costs.

However, Netflix isn't the first company to try out an ad-supported business model. Platforms such as HBO Max, Hulu and Paramount Plus also offer cheaper, ad-supported tiers for people who are willing to watch advertisements in exchange for paying less.

But, will this move work for Netflix? It's out there for all of us to wait and see.

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First Published Date: 24 Jun, 10:48 IST