Netflix may abandon its “no ads” policy in a push for cheaper subscription plans
Netflix, the world’s largest streaming platform, seems to be having a major change of heart with regards to ads. For a long time the company was adamant in refusing to introduce ads, but the need for cheaper subscription options may force it to relent.
The decision to explore this path has not been taken lightly. The gradual shift in Netflix’s stance on ads has been taking place for quite a while. What started off as a decisive “no”, then became a “never say never” before moving through the “maybe” phase and could now be a reality in the next couple of years.
The decision to explore this path has not been taken lightly. The gradual shift in Netflix’s stance on ads has been taking place for quite a while. What started off as a decisive “no”, then became a “never say never” before moving through the “maybe” phase and could now be a reality in the next couple of years.
Direct competitors to Netflix have long profited from ad revenue, which has allowed them to sustain more competitive prices. Hulu for one offers an ad-supported option for just 6.99$ per month, in comparison to the 9.99$ per month asked from Netflix for its entry-level subscription plan.
It should be noted that the inclusion of ads allows Hulu to slash a full 6$ from the price of what is an almost identical service as the ad-free one (which comes at 12.99$ instead). If Netflix were to replicate the model and slash 30-40% of the price they could have a very tempting offer in their hands.
And Netflix is in desperate need of such an offer. Dwindling subscription numbers and plummeting share prices have pushed the business model of the company to its limits. The suspension of the service in Russia and the war in Ukraine have also done their fair share of damage.
Not so long ago, during the peak of the COVID-19 pandemic, Netflix was in its prime (Amazon did well too). Now, for the first time in a decade, the company is losing subscribers. Perhaps a cheaper alternative will be able to change that
It should be noted that the inclusion of ads allows Hulu to slash a full 6$ from the price of what is an almost identical service as the ad-free one (which comes at 12.99$ instead). If Netflix were to replicate the model and slash 30-40% of the price they could have a very tempting offer in their hands.
Not so long ago, during the peak of the COVID-19 pandemic, Netflix was in its prime (Amazon did well too). Now, for the first time in a decade, the company is losing subscribers. Perhaps a cheaper alternative will be able to change that
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