Netflix confirms more affordable subscription options with ads

• Netflix CEO Ted Sarandos says ad-supported membership tiers will launch soon.
• The company’s revenue growth has been hindered by the decline in paid members.
• Netflix currently has around 222 million subscribers.

Netflix has stated that its ad-supported membership tiers will launch soon, proving that they are not just a fiction of our imagination.

According to an international news publication, the company’s CEO Ted Sarandos stated in an interview at the Cannes Lions advertising festival that it intends to add an ad-supported tier to its roster.

The corporation intends to debut the plans before the end of this year, according to an earlier story by another publication.

Netflix desperately needs more subscribers. The company revealed that it has around 200k paid subscribers during an earnings call.

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The company’s revenue growth has been hindered by the decline in paid members.

That is also one of the reasons the business let go of close to 300 workers in less than six months.

The ad-supported plans, though, can help the corporation immediately because they are predicted to be less expensive.

Sarandos remarked Thursday on stage at the Cannes Lions festival with host of the Sway podcast Kara Swisher, “We’ve left a significant consumer segment off the table, which is folks who say: Hey, Netflix is too expensive for me and I don’t mind advertising.”

“We’re not bringing commercials to Netflix as you know it now; we’re just adding an ad tier. For people who say, ‘Hey, I want a lower price and I’ll watch advertisements,’ we’re launching an ad tier.”

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With around 222 million subscribers, Netflix is currently the biggest streaming service, but the firm has been severely hampered by the loss of paid subscribers in the first quarter of 2022.

The business is still working to recover from the blow of losing subscribers.

Not only has it had an effect on the streaming giant’s operations, but so many Netflix staff had to lose their jobs as a result.

According to the publication, Netflix has let go of 300 staff.

According to the report, employment losses have primarily occurred in the US and have affected a variety of economic sectors.

Netflix employs 11,000 people in total. Therefore, the most recent round of layoffs affected 2% of its staff.

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The Netflix spokesperson said in a statement on Thursday that “while we continue to significantly invest in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.”

“We really appreciate everything they have done for Netflix and are making every effort to help them get through this challenging transition.”