To curb its losses and attract more users to the platform, streaming juggernaut Netflix, which has already let go of 450 personnel in two phases, plans to introduce an ad-supported plan by the end of the year.
According to Hollywood Reporter, co-CEO of Netflix Ted Sarandos indicated during the Cannes Lions advertising festival that advertisements will be a part of the streaming juggernaut’s future.
Sarandos disclosed to Kara Swisher, host of the “Sway” podcast, that
We are adding an ad tier. We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads’
The streaming service is in discussions with possible ad-sales partners, according to Sarandos. There has been rising rumour that Netflix may be bought shortly as the company’s stock price has plummeted. An acquisition, according to Sarandos, “is always a reality, so we have to be wide-eyed about it.” Nevertheless, he asserted, “We have plenty of scale, profitability, and free cash flow to continue to grow this business.”
By the end of the year, its rival Disney Plus also intends to roll out a comparable ad-based service, initially in the US before expanding internationally.
After reporting a loss of 2 lakh paying customers in the first quarter of 2022, Netflix’s shares fell by 20%, marking the company’s first subscriber drop in more than ten years.
Furthermore, it now projects a 20 lakh global paid subscriber loss for the April-June period (Q2).
The organization is making cutbacks across a number of its business functions, with the majority of the employment lost in the US. More rounds of layoffs are expected this year, according to the platform.
Image Credits: Hd wallpapers
💫FOLLOW US FOR MORE UPDATES. ❌WE DO NOT HAVE IRRITATING AND SPAMMY NEWSLETTERS. ✅EVERYTHING IS AND WILL BE FREE FOREVER. SEE YOU AGAIN IN YOUR STORIES AND FEED 🙂
