Netflix’s revenue has been falling, forcing the firm to try various efforts to boost it. The firm had previously stated that it will crack down on password sharing. On top of that, it will also establish ad-supported membership plans. These plans would be less expensive than the other options. Netflix may bring out the cheaper ad-supported plans before the end of the year, according to a new report. Netflix membership plans do not currently include advertising. It is one of the main reasons Netflix charges such high money for its membership. Ads can be difficult to deal with. However, if you’re receiving the same material for a lower price, it’s not worth it to put up with a few.
According to an article in New York Times, Netflix’s ad-supported membership levels will be available sooner than expected. The article suggests Netflix officials were notified via email that the ad-supported plan would be launched in the last three months of 2022. Interestingly, Netflix will also start password crackdown around the same time.
Also Read: OnePlus Nord 2T Details out Thanks to a New Unboxing Video.
Official statement from Netflix CEO Reed Hastings on ad-supported membership plans
“Those who have followed Netflix know that I have been against the complexity of advertising and a huge fan of the simplicity of subscription,” Netflix CEO Reed Hastings had previously said regarding ad-supported plans during the company’s pre-recorded earnings presentation.
“But, as much as I enjoy it, I prefer consumer choice, and letting consumers who want a cheaper price and are tolerant of advertising to get what they want makes a lot of sense.” Hastings also indicated that the plans will be less expensive, which may attract a large number of new users.
Netflix had previously explained the reasons behind the income decline. The company’s ability to produce as much revenue as it did previously was due to rampant password sharing, competition from other streaming companies, and the ongoing Russia-Ukraine rivalry. Hastings declared that the corporation will no longer allow employees to share passwords. This is the reason for a 2-lakh-subscriber drop. He had mentioned that consumers in Chile, Costa Rica, and Peru would have to pay an additional fee to share accounts between households. India, for example, would almost certainly follow the same route.
Also Read: OxygenOS 12 A.03 Out for OnePlus 10R.