Netflix plans to implement cheaper ad-supported plans.
Netflix CEO Reed Hastings on Tuesday revealed a move to call the company quarterly profit, adding that the company will look at what those plans will be “in the next year or two.” Netflix CEO Greg Peters said the announcement was “an exciting opportunity for us”.
“Anyone who follows Netflix knows that I was a big fan of the complexity of advertising and the ease of subscribing,” Hastings said. “But as far as I’m concerned, I’m more in favor of customer choice. And allowing low-price, ad-tolerant consumers to get what they want makes perfect sense. ”
Hastings said embracing competitors played a role in changing the company’s opinion.
“It’s pretty clear it works for Hulu, Disney does it, HBO has done it. “We have no doubt it works,” Hastings said, adding that this would be one layer of a Hulu-like plan.
Hastings also said that when Netflix implements an ad-supported tier, it will do so as a publisher, without tracking data or comparing ads, as some competitors do.
“In terms of earning potential, of course, the online advertising market has evolved and now you don’t have to include information about the people you used to use,” Hastings said. “We can refrain from that and really focus on our members, which will create this great experience.”
The ad-related move is a significant shift for Netflix, which has been opposed to advertising on its service from the start. But with subscriber growth slowing and now declining, the potential to attract new price-sensitive users to the ecosystem is too great to ignore.
The decision also confirms the advertising industry’s investment in streaming, as many major providers ask the streaming giant to place an ad on their service.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
