Netflix may launch cheaper subscription with ads in 2022 | streaming

Netflix may launch a new cheaper subscription plan, with ads, still in 2022. The revelation was made by the company itself in an internal statement sent to employees, as pointed out by the newspaper. The New York Times. It is not yet known how the advertising format will be, nor the frequency of displaying ads during movies or series. There is also no information about the arrival of the new value in Brazil.

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Despite rumors pointing to the launch of the new package for a year or two from now, Netflix executives said that the idea was advanced, and could be implemented in the last quarter of the year. according to New York Timesthe note also revealed that Netflix plans to begin “cracking down on password sharing among its subscriber base” around the same time, possibly charging fees from those who make the account to friends who live elsewhere.

Plan with display of ads may reach Netflix in the last quarter of 2022 — Photo: Fernando Telles/TechTudo

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In reply to the website Gizmodo, Netflix declined to comment on the leaked note from employees, but confirmed that it is “exploring a plan with ads for anyone interested” and that it will keep the ad-free subscription options. Rumors point out that the new package should cost less than the cheapest traditional plan on the platform, whose current value is US$ 15.49 in the United States and R$ 25.90 in Brazil.

Speculation about a subscription package with display advertising began in April of this year, when Reed Hastings, co-founder and CEO of Netflix, told investors that such a plan could be launched in a year or two. The statement was made during a conference call to present the company’s results.

“Anyone who follows Netflix knows that I’m against the complexity of advertising and I’m a big fan of the simplicity of subscription. As much as I’m a fan of it, I’m a big fan of consumer choice, and allowing consumers who would like a lower price and are tolerant of advertising to get what they want makes a lot of sense,” Hastings said.

According to him, the practice has been applied to competing streams, such as Hulu and HBO Max, and has given positive results. “I don’t think we have much doubt that it works. All these companies found out. I’m sure we’ll go in and find out, rather than just test it out.”

The note sent to employees also used the cheaper packages launched by competitors to support Netflix’s attitude. “All the major streaming companies, excluding Apple, have announced an ad-supported service. For good reason, people want lower-priced options,” the statement read.

The news of the launch of the new subscription format comes at a delicate commercial moment for Netflix, which announced it had lost 200,000 subscribers in the first quarter of the year, the company’s biggest loss in 10 years. The company also said that it expects to lose another two million users in the coming months. The announcement sent the shares plummeting sharply, reducing about $70 billion in capitalization value.

With information from The New York Times and Gizmodo

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