NETFLIX has teased a cheaper plan that could cost you less each month.
The streaming app boss has revealed that he’s open to an ad-supported membership.
Netflix does not currently show advertising before, during, or after TV shows or movies.
But the price has steadily increased over the years, with the top plan now costing £15.99 / $19.99.
Speaking to investors this week, Netflix admitted it was losing subscribers for the first time in 10 years.
It revealed how 200,000 subscribers had abandoned the app – and that another 2 million viewers could disappear by July.
Now Netflix boss Reed Hastings has admitted that a more affordable ad-supported plan is on the table.
He told investors they would work it out “in the next year or two.”
And said the new plan would be great for viewers who “would like to see a lower price point and are ad-tolerant.”
Netflix also believes that there are now up to 100 million households sharing subscriptions.
That’s a huge chunk of the 222 million total subscribers.
This isn’t the first time we’ve heard of a cheaper tier of Netflix.
Netflix has already tested an affordable “mobile-only” plan.
And last year, analyst Michael Nathanson of Moffett-Nathanson Research sent a note to his customers explains that Netflix may need to offer a subsidized ad subscription.
Streaming services like Paramount+ and Hulu already have such an option, but Netflix has always steered clear of including ads.
Corresponding NextTVNathanson’s notes page: “While Netflix management remains firmly opposed to the idea of advertising, we believe that if future rates of subscriber growth fall short of Street’s expectations, that view will be viewed as a strategic error.”
Experts believe that Netflix is staying away from advertising primarily because it doesn’t want to spend money tracking its users for advertising purposes and doesn’t want to get involved in the privacy issues that come with it.
Nathanson found that Netflix accounts for 6% of total minutes spent watching.
That’s more than Hulu, which is said to account for 3%.
That means Netflix would be of great interest to advertisers.
That means Netflix ads could reach many more streaming customers and don’t necessarily need “hyper-targeted” ad campaigns to make money.
Netflix lost a significant number of subscribers on its home turf in the first quarter of this year.
Around 600,000 viewers in the USA and Canada abandoned the app.
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https://www.thesun.ie/tech/8678184/netflix-cheap-price-plan-monthly-fee/ You could soon be getting Netflix MUCH cheaper — but with a catch