Netflix to explore ad-supported plans after losing subscribers


  • Netflix plans to launch ad-supported plans
  • Netflix CEO revealed that such plans may arrive in a year or two
  • It will allow Netflix to gain new subscribers and earn more profit

Netflix plans to introduce ad-supported subscriptions after losing subscribers in the recent quarter. While rival streaming services have offered free or affordable plans with advertisements, Netflix has refrained from such plans. The news about Netflix introducing plans with advertisements has surfaced after it reported a loss of 2,00,000 subscribers globally. It was the first time in a decade that Netflix had lost subscribers

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The company estimates that it may lose up to 20 lakh subscribers in Q2 this year. Apart from ad-supported plans, the company is reportedly looking to generate more revenue through those customers who share their accounts with friends and family outside their homes. It seems that the company is also planning to provide users access to live sports in future.

Netflix plans to introduce ad-supported plans


Netflix ad-supported plans may arrive in a year or two, said Netflix CEO

In a recent earnings call, Netflix CEO Reed Hastings said that the company is “quite open to offering even lower prices with advertising, as a consumer choice.” He revealed that the ad-supported plans would not be available on Netflix for a 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 to get what they want makes a lot of sense,” Hastings said.

“It is pretty clear that it is working for Hulu, Disney is doing it, HBO did it. We don’t have any doubt that it works,” Hastings added. In the US, Netflix’s basic tier costs $10 (~Rs 760) per month, the standard tier costs $15.49 (~Rs 1,180), and the premium tier costs $20 (~Rs 1,520) per month. In India, Netflix offers four plans, such as a mobile plan, basic, standard, and premium. These are priced at Rs 149, Rs 199, Rs 499, and Rs 649, respectively.

The ad-supported tier will help Netflix make further inroads in markets like India, where rivals offer affordable as well as ad-supported plans. Netflix had the early lead in the streaming market but is now being faced with new competition, declining subscriber base, and consumer dropping these services.  With an ad-supported tier, Netflix could replicate some of the success seen by its rivals.


Anvinraj Valiyathara

Anvinraj Valiyathara is a seasoned tech news writer with a remarkable journey spanning over a decade. With a prolific career that began in 2010, Anvinraj has been at the forefront of the ever-evolving technology landscape, consistently delivering cutting-edge news to his readers. With an impressive portfolio of more than 18,000 news posts written since 2017, his dedication to staying ahead of the latest trends and breakthroughs in the tech world is evident. His expertise extends beyond news reporting, encompassing insightful reviews of smartphones, tablets, wearables, and other consumer tech. Beyond the realm of technology, Anvinraj is an active Twitter enthusiast, a passionate Formula 1 fan, and finds solace in engaging in church activities. Fuelled by an innate curiosity, he also nurtures a love for travel, which further enriches his perspective and keeps his writing fresh and vibrant.