For a while subscription costs have been growning for Netflix customers, with alot of people unsubscribing to the platform in favor of other services. For the people who might have been turned off by the growing subcription costs,Netflix plans to launch a brand-new lower priced tier.The catch? It will come with ads.
Netflix CEO Ted Sarandos said in an interview that the business has ignored a group of customers who are prepared to pay less in exchange for watching advertisements.
We're adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, 'Hey, I want a lower price and I’ll watch ads'.
This year, Netflix's basic subscription costs $12.99 per month, and the standard plan costs $18.49 per month. While the premium plan, which includes their best video quality will set you back $24.99 per month.
We’ve left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don’t mind advertising',
There are other streaming services around that have included commercials besides Netflix. In 2020, Amazon Prime started offering advertisements for specific movies and TV episodes, while an ad-based service on Disney+ will be available to US subscribers in 2022 and 2023.
The new ad-inclusive plan’s price has not yet been disclosed.