It was a rough day for Netflix, as not only did their subscribers drop for the first time in over ten years but also saw their share drop by over 25%. Yet, it seems that the company has plans to counter ct its recent developments and plans, as Co-CEO Reed Hastings has revealed they are planning on releasing an ad-supported version of the service. In a new statement, he has revealed their decision to push forward with this offering, and they plan to release it in the next “year or two.”
Those who have followed Netflix know that I have been against the complexity of advertising, and a big fan of the simplicity of subscription. But as much as I am a fan of that, I am a bigger fan of consumer choice. And allowing consumers who would like to have a lower price, and are advertising-tolerant get what they want, makes a lot of sense.Reed Hastings
the move makes sense to push its development forward, especially as there’s a big market that obviously hit its pay gap with the recent raise. So, this ad version not only offers them an alternative income stream but gives viewers an option to watch their favorite shows at a more affordable price. Though trying to pull the sharing aspects may backfire, as while it seemingly has a potential of up to 100M sharers, it doesn’t mean they will translate that number directly to new subscribers if they take away a function they’ve been used to for years. We’ll see if this pays off long-term for the service.
Source: The Hollywood Reporter