Netflix will soon be launching its ad-supported subscription plan in which subscribers access the service at a lower monthly fee for seeing four minutes of ads per hour. Recent reports hint that this plan will be launched much earlier than previously anticipated. The revolutionary Netflix subscription plan can be expected to be made available for subscribers from November of this year, or sometime early next year. The company is considering introducing this ad-supported tier before Disney does the same in December.
Background
Netflix has been struggling to maintain both its position and profitability, despite being the most popular subscription streaming service in the US. Netflix’s terms and conditions prohibit password-sharing, but the account can still be shared between family or friends living anywhere in the world. This is when the company started its trial on monetizing password-sharing in 2019, resulting in losing 200,000 subscribers in the first quarter of the year. The company started squeezing more cash from its remaining subscribers in an effort to make up the loss, but this back-fired with even more people canceling their subscription.
Netflix ads plan
Netflix confirmed in July its plan to launch a lower-priced, ad-supported subscription tier by the early part of 2023 as a strategy to attract more subscribers. It will be making this possible through partnerships with Microsoft, and by recruiting top-level ad executives. Recently, The Wall Street Journal and Variety have reported that the ads plan will go live from 1 November onwards in countries including the U.S., Canada, U.K., France and Germany. The decision by Netflix to move up the timeline for the launch of its ads-supported plan is to get ahead of the Disney+ Basic tier with advertising hitting the US market on December 8.
Although Netflix claims that it has not yet decided on the date on which this cheaper, ad-supported tier will go live, many have confirmed that this will become possible in November. It is expected that the subscription cost of this new ad plan will be in the range of $7-8/month.
What do you think? Will Netflix be able to gain back its subscribers after going economical? Share your thoughts in the comments below!
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