Streaming giant Netflix has decided to launch a new ad-supported plan to increase it’s revenue base. There has been a change in Netflix’s strategy since the streamer disclosed that it lost nearly two hundred thousand subscribers in a quarter. Now, the company has decided to launch an ad-supported program to gain new subscribers.
The company’s chief content officer Ted Sarandos disclosed some information regarding the upcoming ad-supported program at recent meetings with investors. As per the Deadline, Ted Sarandos shared how they will roll out the ad-supported plan to users next year. The company has also partnered with Microsoft for it’s ad-supported plan.
He also mentioned that the ad-supported program will not give users access to the company’s complete content library. Users will have all of Netflix’s originals but some of the licensed content will be restricted. Those licensed content will only be available to the paying subscribers only.
According to Sarandos, “Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier. There are some things that don’t and we’re in conversations with the studios, but if we launched the product today, members in the ad tier would have a great experience. We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business.”
Netflix shared a letter to shareholders in which the company mentioned that this ad-supported cheaper plan will first roll out to users in a “handful of markets where advertising spend is significant.” The company did not mention when they will be launching this new plan but it will sure debut next year. There is not much detail available about this plan but it will be a cheaper version but with some ads. So, it will be easy for many users to subscribe to this new plan that comes with a cheaper price tag than normal.
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