Netflix Might Offer An Ad-Based Tier In The Future
Amid huge losses in subscribers and results allegedly negatively impacted by password-sharing, Netflix is now coming around to the idea of offering an ad-based model to grow its subscriber base and make more money.
For years, Netflix had said it had no interest in a setup like this, but during the company's latest earnings briefing, founder Reed Hastings said it might finally be time to do so. Nothing is confirmed yet, however, but Netflix would be following basically every other major streaming company in offering an ad-based option alongside a subscription-based offering.
Hastings said, «Those who have followed Netflix know that I've been against the complexity of advertising and a big fan of the simplicity of subscription.» At the same time, Hastings said he is a «bigger fan of consumer choice,» and that's where an ad-based model could come in.
«Allowing consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense,» Hastings said. «So that's something we're looking at now. We're trying to figure out over the next year or two. But think of us as quite open to offering even lower prices with advertising as a consumer choice.»
«I think it's pretty clear that it's working for Hulu. Disney is doing it. HBO did it. I don't think we have a lot of doubt that it works; that all those companies have figured it out,» he added. «I'm sure we'll just get in and figure it out as opposed to test it and maybe do it or not do it. So I think we'll really get in. But again, it would be a plan layer, like it is at Hulu. So if you still want the ad-free option, you'll be able to have that as a consumer. And if you would rather pay a lower price and you're ad-tolerant, that's
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