Steaming giant Netflix has revealed that it plans to introduce adverts as a means to offer cheaper streaming options but also combat dropping subscriber counts.
The lack of adverts is one of the more alluring aspects of Netflix, with viewers being able to binge episodes without having to tolerate dragging advertisements for various products and/or services.
However, co-CEO Reed Hastings has revealed plans to introduce ads as an option during the company’s quarterly earnings call on Tuesday 19th April.
Hastings explained that he has previously been against the complexity of advertising, and a big fan of the simplicity of subscription. Despite being a fan of this model, Hastings said he is a ‘bigger fan of consumer choice.’
‘Allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.’ Netflix will be examining exactly what needs to be done over the next year or two, so your account might be ad free for a while.
However, the position was made clear by Netflix COO Greg Peters that advertising is an exciting opportunity for them. ‘Think of us as quite open to offering even lower pries with advertising as a consumer choice.’
This comes just as Netflix lost 200,000 subscribers in the first quarter of the year, the first time Netflix lost subscribers since 2011. With new streaming platforms like Disney+ and HBO Max, the giant is seeking to adapt to a new competitive field.
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