Netflix reveals plans for lower-cost subscription plans with adverts
So you watch your movies and shows with ads. Like, y'know, how your TV works.
Off the back of Netflix's recent announcement that the streaming service has lost 200,000 subscribers in the first three months of 2022, and the revelation that it foresees the loss of an additional two million subscribers in the next three months, Netflix has revealed plans for the future of the company.
One of those big plans is to introduce a lower cost subscription, in exchange for adverts playing before or during the movie or show you've selected to watch.
As reported by The Hollywood Reporter, during the company's quarterly earnings call, Netflix co-CEO Reed Hastings said the following:
"Those who have followed Netflix know that I have been against the complexity of advertising, and a big fan of the simplicity of subscription. But as much as I am a fan of that, I am 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."
This is identical to the plan that Disney+ revealed about a month ago, when Kareem Daniel, the Chairman of Disney Media and Entertainment Distribution, said the following about a new subscription offer:
"Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone - consumers, advertisers, and our storytellers. More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families."
The Disney+ plan will kick off in the US in late 2022 before expanding worldwide in 2023, while Hastings commented that Netflix will be examining what its version of those plans will look like "over the next year or two."