Netflix has decided to implement a two-pronged strategy to ensure that there is a revenue boost in the coming months. Aside from the fact that the streaming platform will be charging more for sharing passwords and the fact that it is working on a cheaper, ad-supported subscription plan. Details about the upcoming ad-supported tier have come to light.
The Ad-Supported Netflix Subscription Tier Does Not Seem to Look Nice So Far
Netflix's co-CEO and Chief Content Officier Ted Sarandos has shared some details about the new tier during a recent earnings call. According to Deadline, Sarandos has talked about how the ad-supported Netflix subscription plan will be rolling out to users next year, and the company is partnering with MIcrosoft for the rollout.
Sarandos has also gone ahead and confirmed that the ad-supported tier will not give users access to the entire library that Netflix has. While users will get access to all the original programs, some of the licensed content will not be available for cheaper tier.
Sarandos said, “Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier. There’s some things that don’t and we’re in conversations with the studios on, 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.”
In a letter to shareholders, Netflix further added that the ad-supported tier will first debut in a “handful of markets where advertising spend is significant.” At the moment, we have no details about the upcoming ad-supported plan, but based on the information we have, it does not seem like it will be pleasing everyone.