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Ads on Netflix? How it could change your streaming options

 2 years ago
source link: https://finance.yahoo.com/news/ads-netflix-could-change-streaming-164918871.html
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Ads on Netflix? How it could change your streaming options

Brett Molina, USA TODAY
Fri, April 22, 2022, 4:58 AM·3 min read

Coming soon to your Netflix account: ads.

During its quarterly earnings report, where it revealed its first drop in global subscribers in a decade, Netflix said it is exploring plans that include ads for a lower price.

In a call with investors, Netflix co-founder and CEO Reed Hastings said he has been against "the complexity of advertising," preferring the simplicity of a subscription.

"But as much I'm a fan of that, I'm a bigger fan of consumer choice," Hastings said. "And allowing consumers who would like to have a lower price and are advertising-tolerant (to) get what they want makes a lot of sense."

Although Hastings said an ad-supported plan is still a year or two away, it's a moment Netflix subscribers might dread. One of the biggest appeals of Netflix is watching favorite TV shows or movies without a single commercial interruption.

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Netflix said it is exploring new subscription plans that include ads for a lower price.
Netflix said it is exploring new subscription plans that include ads for a lower price.

However, more consumers appear comfortable mixing ads with their streaming, so long as it's affordable. A December survey from Forrester found 44% of U.S. online adults who use a streaming service will put up with ads if it means they pay less.

"Ultimately consumers will follow the content and the overall value they’re getting when choosing which streaming services make their watch list," said Forrester VP and Research Director Mike Proulx.

Complicating matters is Netflix also is trying to crack down on subscribers who share their passwords. The company said it plans to expand features over the next year that it's testing in Chile, Costa Rica and Peru, giving users the option to pay extra if they want to share their account outside their household.

How will my Netflix subscription change?

Netflix did not reveal details on what plans would look like once an ad-supported option is available, or how much it might cost.


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