Netflix isn’t entirely against an ad-supported tier, after all
You may one day be able to watch Netflix for less, but you’ll have to put up with adverts in between episodes of your favorite TV shows, and it’s very unlikely to happen anytime soon. Netflix’s CFO, Spencer Neumann, spoke about the topic of a subsidized pricing tier during an investor conference on March 8th and said that the company isn’t entirely against the idea in the future. However, he did note that it isn’t in the company’s current plans.
As reported byVariety, Neumann said, “It’s not like we have religion against advertising, to be clear. But that’s not something that’s in our plans right now… We have a really nice scalable subscription model, and again, never say never, but it’s not in our plan.” Netflix has previously outright said it won’t offer an ad-supported tier. The company’s CEO, Reed Hastings, said in early 2020 that the company believed “there’s not easy money there”.
So why the change of heart? It may be because of Netflix’s competition, with many new streaming services now offering ad-supported tiers.Disney+ recently confirmedit will include a subsidized tier that will show you ads in trade for a cheaper subscription in the US later this year. Rivals to Netflix, such as HBO Max and Hulu, already offer these cheaper tiers that show adverts.
Neumann didn’t name any specific services, though he said some streamers “are going low-price, but I think they’re also losing a lot of money.” He also commented on theprice hikes that Netflix subscribersin the US and Canada experienced earlier this year. Neumann said, “at the end of the day, we’re pricing for what we believe is the value we provide.”
After themost recent price hike, Netflix’s cheaper plan costs $9.99 a month in the US. If you want the 4K service, you’ll be spending $19.99 a month. Maybe one day you’ll be able to lower this price again thanks to an ad-supported tier, allowing you to watch hit shows like The Witcher, Bridgerton or Squid Game on the cheap.
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