Netflix is slowly getting closer to a cheaper subscription with advertising. The question is not if, but when.
For a long time we thought it was just rumours. Surely Netflix would never overturn the basic subscription system for advertising? Sadly, we’re closer than ever, with CEO Reed Hastings promising to develop the advertising subscription within a year or two. The only positive thing about it? A cheaper Netflix subscription.
Netflix with advertising is coming
Netflix made a huge loss based on the most recent quarterly figures and that happened before any advertising was brought to the streaming service! The company thinks a cheaper plan with advertising would work well. Hastings mentions opposite Hollywood Reporter competitors like Disney and Hulu. They do it too.
I’ve always been against the complexity of ads and I’m a big fan of the simplicity of subscriptions. But despite that, I’m a bigger fan of consumer choice. It is therefore more than logical that consumers have the choice of a lower price compared to some advertisements.
Reed Hastings, CEO of Netflix
It is not yet known how much discount will be given. The subscription should only be completed in a few years. Netflix then offers the current subscriptions, the dreaded sub-subscription and an option with advertising.
And with Netflix getting more and more expensive, that could be a good option for many. The question then is whether the money saved is worth it. And whether providing even more data is desirable. As far as Netflix is concerned, it will be fine: “In terms of potential profit, the advertising market is very advanced these days. And nowadays you don’t have to share information about users anymore [om goede advertenties te bieden]†