Netflix To Launch Ad-Supported Tier Next Month
by Emily Nagle
After years of Netflix CEO Reed Hastings stressing the necessity of the platform’s ad-free nature, Netflix will be rolling out an ad-supported payment plan in the United States on November 3, going for $6.99/month (as opposed to the ad-free Basic plan, which costs $9.99/month).
So, why is Netflix adding in commercials after being opposed to them for so long? In the first few months of 2022, Netflix lost a substantial amount of subscribers (200,000, to be exact) for the first time in a decade, and its stock plummeted as a result. The “Basic with Ads” plan will hopefully replenish Netflix’s revenue by introducing a cheaper option for customers who don’t want to pay premium. Ideally, this will help the platform to regain 1 million customers in the third quarter.
“We want to offer consumers choice,” Netflix COO Greg Peters explained in a media conference call, “and figure out what the best offering is for them.”
While they may have more choices, consumers aren’t particularly thrilled with the streaming platform’s decision. Many social media users have commented that the company has defeated its own purpose by adding commercials. Netflix, however, sees this as an opportunity to expand their services to people with different viewing and spending habits.