Netflixis undergoing some pretty drastic changes, as the streaming company has had to make some adjustments on both the business and content fronts. However, the latest of these might be the first to make the platform cheaper.
As reported byBloomberg, Netflix is already pondering setting the price of its ad-supported plan in the region between $7 and $9 for its standard package, currently set at $15.49, though this new budget-minded option could stay on hold until 2023. The strategy would look to onboard new prospective customers who might be willing to tolerate a few minutes of ads in-between their binge sessions, but how many ads wouldNetfliximpose on this plan?
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Well, according to that same report, the ad-supported tier would see Netflix users watch 4 minutes of commercials for each hour of normal viewing time in order to enjoy this discount. The strategy had been mentioned before in the company’s internal memos, taking note ofits competitors HBO Maxand Hulu, with the two currently offering plans with ads that have boosted their growth. That playbook will also be copied by Disney Plus towards the ends of the year, starting on December 8 for the sum of $7.99, the current cost of its regular service.
Funnily enough, Netflix and Hulu are the sole two streaming companies that actually earn more money than they spend, a position largely owed to their early entry into the streaming wars, although it’s quite common for fast-growing tech unicorns to not pay much attention to profitability. Instead, it’s the sudden halt to growth that’staken a big hit to Netflix stock, especially now that Disney Plus, Amazon Prime Video, and HBO Max have a growing influx of users.
Cancelations are also at the day’s order, with the poorly-reviewedResident Evilbeing the latest show to be axed. Meanwhile,House of the DragonandRings of Powerprove other streamers are spending like there’s no tomorrow.
