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Hastings: Netflix Considering Cheaper Ad-Supported Subscription Option

Netflix is considering launching a less-expensive ad-supported subscription offer, co-founder/co-CEO Red Hastings disclosed on the streamer’s Q1 fiscal webcast.

Netflix is one of the few major SVOD platforms on the market, along with Amazon Prime Video, that are not ad supported — at a time when slowing sub growth is pushing services such as HBO Max, Disney+ and Paramount+ to mine their significant subscriber bases to marketers with less-expensive ad-based subscription plans.

“Those that have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said. “But as much as I’m a fan of that, I’m a bigger fan of consumer choice. And allowing consumers who would like to have a lower price and are advertising-tolerant, get what they want, makes a lot of sense.”

While no details about a potential plan was announced, with Hastings’ advocating the move, the option is sure to be made available in the near term.

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And following a net subscriber loss of 200,000 in the first quarter, and projections of a 2 million net sub loss in the current quarter, Netflix needs to act proactively to assure investors and the bottom line. With more than 221 million paying subscribers and a projected 100 million non-paying members accessing the platform, Netflix needs to explore alternative revenue sources.

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