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Today’s News: Netflix? Ads? Your Streaming Choices May Be Affected

So, ads are coming soon to your Netflix account.

In the report of its quarterly earnings, Netflix made the revelations about its first decline in subscribers across the world in the last ten years, it stated that it is figuring out plans that have ads for a reduced price.

During a discussion over a call with investors, the co-founder, and CEO of Netflix, Reed Hastings stated that he has been not in favor of “the complexity of advertising,” considering the effortlessness of a subscription.

Hastings stated “But as much I’m a fan of that, I’m a bigger fan of consumer choice,” adding further “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.”

However, it was stated by Hastings that a plan that includes ads is still a year or two away, it’s a point Netflix subscribers might fear. Among the biggest appeals of Netflix, is hopping onto favorite television series or films without a single advertisement break.

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Although, more users seem to be quite okay with displaying ads while they’re streaming, as much as it falls under their budget. According to a December survey from Forrester, 44 percent of U.S. online adults who use a streaming service have no issues in putting up with commercials if it enables them to pay less.

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

The thing that makes matters even worse is Netflix also is attempting to put a stop to subscribers who share their passwords. Netflix said it is planning to enhance features over the coming year that it is testing in Chile, Costa Rica and Peru, providing users with the option to make additional payments in case they sought to share their account beyond their family.

How Will My Netflix Subscription Change?

As of now, no information has been revealed by Netflix about what plans would look like after an ad-supported plan becomes available, or how much it will be priced.

Today News : Netflix

Though other streaming services might give an overview of how new Netflix plans could work. For example, Hulu has long provided options for ad-supported and ad-free plans. It has a plan that costs $6.99 per month with ads and another plan that costs $12.99 per month that would be ad-free.

Similar options have also been made available by HBO Max, with a subscription of $9.99 per month with ads and another option is $14.99 per month without the ads but backs features such as offline downloads. The streaming service Peacock also offers ad-free and ad-backed subscriptions as well.

Earlier this month, Disney declared it would launch a version that will display ads this year though it did not give any details regarding prices.

As of now, Netflix provides three plans: 

Wedbush analyst Michael Pachter said that now the main question that arises for Netflix is how much an ad-supported plan will cost.

Pachter said “You look at Hulu. It’s $12.99, they cut the price (for the option with ads) to $6.99, so they cut it by $6. If Netflix says, ‘Oh, we’ll cut it to $9.49,’ I doubt anybody does it,” adding further “It’s like, what’s the point? You’re still paying more for Netflix with ads than you’re paying for Disney without, which doesn’t make sense at all.”

Final Words

We will keep you updated with all the latest information until then stay tuned to our website, Venturejolt.

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