Netflix confirms launching ad-supported subscription plans, in talks with Google and more brands
As the initial boom in streaming fades, competition intensifies, and increasing inflation cuts consumer spending on entertainment, Netflix's most competitive rival, Walt Disney Co's Disney+, has also stated it will provide an ad-supported option.
FollowNetflix Inc is in negotiations with multiple firms about advertising agreements, co-CEO Ted Sarandos said on Thursday, as the streaming behemoth tries to boost subscriber growth by launching a lower plan with advertisements. According to media reports earlier this week, it was in talks with Alphabet Inc's Google and Comcast Corp's NBCUniversal about prospective marketing alliances. When asked which firm Netflix was hoping to work with, Sarandos remarked at the Cannes Lions conference, "We're talking to all of them right now."
Netflix announced in April that it was seriously considering advertising after losing subscribers for the first time in a decade and expecting a 2 million drop in the following quarter.
"We will not be adding advertisements to Netflix as you know it today. We're introducing a new ad tier for people who say, "Hey, I want a cheaper price and I'll watch advertisements," Sarandos stated during the Cannes Lions Festival.
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As the initial boom in streaming fades, competition intensifies, and increasing inflation cuts consumer spending on entertainment, Netflix's most competitive rival, Walt Disney Co's Disney+, has also stated it will provide an ad-supported option.
Netflix desperately needs new members. During an earnings call, the business stated that it had over 2 lakh paying customers. The decline in paying customers has stifled the company's revenue growth. That is also one of the reasons why the corporation has let go of around 300 people in the last six months. However, because ad-supported plans are likely to be less expensive, they can help the firm immediately.
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Netflix is presently the largest streaming powerhouse, with about 222 million users, but the loss of paying subscribers in the first quarter of 2022 has had a significant impact on the corporation. The firm is still striving to recover from the shock of the subscriber loss. It has not only had an impact on Netflix's operations, but several staff have had to leave the company.
