New Netflix continues detailing its plans

Netflix continues detailing its plans to add an ad-supported subscription tier at a lower price tag. A new report shed reveals additional details about Netflix's advertisement plans. Netflix originated as a DVD rental company before moving into the streaming circuit in 2007. 

The company competes with several prominent streaming platforms, including Hulu, Disney+, Apple TV+, HBO Max, and Amazon Prime. As the streaming wars escalate, it seems even Netflix may not survive without the help of additional revenue. For years, Netflix remained the most popular streaming service by a fair margin. At the start of 2022, Netflix boasted an incredible 221.84 million subscribers. In April, however, Netflix reported subscriber loss amounting to 200,000. Subsequently, Netflix has been looking into other ways to increase its subscriber count and prevent future subscriber loss. Plans proposed included locking down on password sharing and, most notably, the potential introduction of a lower-priced, ad-supported subscription plan.

Adding Commercials Netflix has been facing subscriber and competitor issues, casting doubt over its future. Here is how the streaming giant seeks to solve them. The streaming giant Netflix has revealed new plans to introduce a subscription plan with commercials. Initially a video-rental company, Netflix first launched as an online streaming service in 2007. Since then, the platform's film and television show library has expanded; aside from obtaining distribution deals, the platform has also released its own content, known as Netflix Originals. While it has successfully established itself as a leading media provider, Netflix has encountered subscriber and competition issues of late, forcing the company to reevaluate its subscription plans.

Netflix entered 2022 with an outstanding 221.84 million subscribers. These numbers largely translate into billions of hours spent watching original television series and films available on the platform. Its most-watched titles include the retro-themed sci-fi series Stranger Things, whose season 4 release is split into two, the Korean survival thriller Squid Game, the Regency romance Bridgerton, and the Spanish heist drama Money Heist. Meanwhile, Netflix’s biggest films to date mostly comprise ensemble projects such as Red Notice, Don’t Look Up, and The Adam Project.

Netflix must negotiate compensation with the major studios whose programming they carry. This would include older shows like Breaking Bad, for which Netflix has held streaming rights for over a decade. If Netflix is to put studios' content on an ad-supported platform, the affected studio will likely charge Netflix a 15-30% premium on the content. Studios will require further compensation to make downloads permissible. Netflix has yet to comment on specific details of its advertising. For example, the platform has not told content providers where ads will be placed within the programs nor what they will charge subscribers for the ad-supported option.

Netflix's internal operations have been historically kept obscure. With the report of its massive subscriber loss this April, one thing is clear: Netflix will have to make changes to regain the powerhouse status it has maintained for years. That restructuring will come at a cost to the company, which will need to pay the premiums to content providers to play the content on their platform. Given the extra costs, Netflix may have to offer more limited titles to the ad-supported subscription plan.

Netflix seems to have big ambitions for the launch of the ad-supported platform. Netflix has reportedly told content suppliers that they would like an ad-supported program up and running by as early as the end of 2022. If Netflix creates the ad-supported option, it will be in good company. Hulu's most basic plan still has an ad-supported option. Will Netflix's new plans save the streaming giant? Only time will tell as Netflix continues developing its new subscription options.

The rise of competitors like Disney+, Hulu, Apple TV+, and HBO Max, Netflix has suffered from its consumer base’s divided attention and patronage. As such, despite initially advocating against the inclusion of advertisements, recent events have forced Netflix to consider implementing an ad-supported, lower-cost option to its existing three-tier subscription plan. Here is everything we know about Netflix’s intent to add commercials to the platform.

Netflix Has Teased A Cheaper Subscription Plan Including Ads As of January 2022, Netflix, whose cancellation rule may be causing the platform additional headache, offers three ad-free subscription plans with higher monthly prices. Subscribers who opt for the basic plan now pay $9.99 a month, where they can watch only on one screen and download content on one phone or tablet. On the other hand, the monthly cost of Netflix’s standard plan is now $15.49. With this, users can watch movies and shows in HD on two screens simultaneously and download them on two devices. Lastly, Netflix’s premium plan is now priced at $19.99 a month, enabling consumers to watch and download in HD or Ultra HD on four gadgets at the same time.