It’s no secret that Netflix has been developing a less expensive membership plan with ads, but until recently, this information was merely a rumour, especially after Netflix CEO Reed Hastings stated that the company had no intention of letting ads harm the platform.
Ted Srandos, co-CEO of Netflix, has recently asserted that the company is developing a more cost-effective membership package that would have advertisements. He claims that the absence of advertisements on Netflix is a squandered opportunity.
People who claim that Netflix is too costly for them yet don’t mind advertisements make up a sizable portion of our target market, and we’ve left them off the table. People who say, “Hey, I want a lesser price and I’ll watch advertisements” will be catered to by the new ad-supported tier.
He has also stated that prospective ad-sales partners for the new tier are now being discussed by Netflix.
You may continue to enjoy Netflix as it is without any advertising because Netflix does not have any plans to introduce them anywhere. This gives premium members peace of mind. Only those who choose the less expensive version of the new subscription model will see advertisements.
We anticipate seeing the new tier before the end of the year, though Netflix hasn’t said when it expects to launch it.
To read our blog on “Netflix may purchase Roku in order to speed up the ad-supported tier,” click here.