Netflix co-founder and co-CEO Reed Hastings said in a statement on Tuesday after rejecting the call for streaming tiers to support advertising for years, the company said, “In advertising as a consumer choice. We are very open to offering even lower prices. ”
Apparently, the company is currently considering options and “is trying to figure it out over the next year or two.” Hastings said that introducing a hierarchy that supports advertising has historically “opposed big fans of advertising complexity and subscription simplicity,” admitting that it will revolutionize the way the company thinks. I am.
Hastings is currently touting the idea of ad support as “very reasonable” for “consumers who want low prices and are tolerant of ads.”
After the news on Tuesday Lost subscribers for the first time in 10 years, Netflix seems to accept a lot of things it refused. Co-CEO Ted Sarandos presented what he needed for a long-rumored live broadcast of the sport.Quoted by deadline“I’m not saying we never play sports, but we have to see a way to grow a big source of income and a big source of profit,” he said. This is a big change from the flat Netflix. Previously provided.
Netflix is far from the only company to introduce a layer that supports advertising. Hulu, Peacock, Even HBO Max In exchange for the occasional interruption of the show, we offer a plan that consumers pay less (or do nothing for peacocks).Disney also has it Add options supported by ads To Disney Plus by the end of the year.
Netflix currently charges $ 10 per month for the base tier, $ 15.49 per month for the standard tier, and $ 20 per month for the premium tier.These prices are relatively new — the company Hit them in March.. Hastings said on the phone that he is proud of Netflix’s “price spread,” but as he showed in January, the company’s high market penetration gives it an option to make more money. Is limited. Besides raising the price over and over again..A cheaper, ad-supported hierarchy (and Trying to reduce password sharing) It may be part of the company’s plan to increase the number of customers and introduce another source of revenue.
Disclosure: The Verge I’m currently working on a series on Netflix.
Update 7:18 PMET: Added a note about Ted Sarandos referencing live sports.