Netflix Inc. is thinking about charging $7 to $9 per month for its new ad-supported tier, which would be 50 percent less than the cost of its most popular plan, which is now available for $15.49 a month without commercials.
The objective is to draw customers who are ready to view certain advertisements in exchange for a lower monthly fee. The industry leader in streaming TV is getting ready to launch advertising for the first time, and it’s working carefully to find a way to appeal to customers who are more cost-conscious while still providing a good experience.
According to a recent study, Netflix’s ad-supported membership tier might cost less than half as much as its most popular regular plan.
What Netflix CEO has to say about this?
After being infamously ad-free for years, Netflix co-CEO Reed Hastings had stated in April that the business was looking into the idea of an ad-supported plan.
During that time, he declared, “Those who have followed Netflix know that I have been against the complexity of advertising and a strong fan of the simplicity of membership.” “However, as much as I support that, I am a stronger supporter of consumer choice, and allowing customers who want a cheaper price and are tolerant of advertising to obtain what they want makes a lot of sense.”
In a May interview with the New York Times, co-CEO Ted Sarandos provided more details on the strategy.
According to Sarandos, “For us, it was all about simplicity of one product, one pricing point.” “I believe that it can now handle some complexity.”
The announcement arrived just when Netflix needed it. For the first time in more than a decade, the business reported a net loss of subscribers that same month.
Pricing for a Netflix ad-supported plan
Netflix has introduced an ad-supported plan which is half the price of their most popular offering. This new discounted option hopes to attract more subscribers who want to stream without any interruptions or advertisements, but can’t afford it outright yet.
According to Bloomberg’s late-Friday story, the business is considering ideas to charge $7 to $9 per month for ad-supported viewing. According to those familiar with the company’s intentions, Netflix will attempt to run four minutes of advertising every hour under this tier, but only before and during programming.
Netflix has announced that they will be broadcasting four hours of original content in India, with ads for their service. The price point is set at an affordable level compared to other countries where it costs $9/Rs 790 or more per month (the base rate). The ad-supported subscription model has not yet been made available, though.
Currently, the Standard subscription plan from Netflix costs $15.49 per month. The Basic package costs $9.99 per month, while the Premium tier, which has high-definition features, is $19.99.
Information on the well-known Netflix Ad-Supported Plan
Netflix is looking to offer a cheaper ad-supported plan. For its new pricing structure, Netflix may consider $7-$9 per month which would be 50% less than the most popular tier at present time and also mean that users will have access without any ads while watching their favorite shows or movies on demand anytime they want! Currently, a month’s worth of Netflix’s plan for ad-free viewing costs $15.49 (about Rs. 1,230). To get more customers on board with their streaming service, who are willing to view advertising videos from the company’s ad-supported plan every hour they will offer a cheaper monthly rate. People looking at this deal might be drawn in by how much it costs per month when compared to other services out there.
The streaming powerhouse Netflix is probably hoping to keep kid-friendly movies and TV episodes commercial-free, as its rival Disney+ stated in May of this year. According to TechCrunch, Netflix will continue to offer kid-friendly content without advertisements. But it’s anticipated that original programs like “Stranger Things,” “Bridgerton,” and “Squid Game” would still have commercials.
In March, the website imposed fees for password sharing
In a blog post from earlier this month, Chengyi Long, Netflix’s director of product innovation, stated: “We’ve always made it simple for couples to share a Netflix subscription by including features like multiple streams and separate profiles in our Standard and Premium plans.
Despite their immense popularity, these have also led to certain misunderstandings around the appropriate times and methods for sharing Netflix. Due to account sharing amongst families, we are less able to provide our users with exciting new TV and movies “.
Do Netflix’s subscribers keep on leaving?
So it was expected when Netflix started charging for password sharing earlier this year. However, it is impossible to overlook the fact that Netflix is losing customers at the same time that it is testing the extra charge for sharing the password. The multimedia streaming service Netflix reportedly lost more than 200,000 customers in the first quarter of 2022, marking the first time this has happened in ten years. The platform also anticipates losing an additional two million subscribers in the upcoming months.
Recently Netflix is gearing up its industry in gaming platforms by launching its version of the game ‘Heads Up!’ to test your IQ. Also like the Sony PlayStation, Netflix buys the first video game studio and rolls out mobile games. Netflix has intensified its efforts to succeed in the cloud gaming market. Thus Netflix consumers have more to enjoy in the coming days. For more such updates read here.