Netflix users! Prepare yourselves to welcome the ads!
One of the Co-CEOs at Netflix, Ted Sarandos, has affirmed that advertisements will become a part of the streaming giant in future while speaking at the Cannes Lions Festival on Thursday.
Netflix is well-known for turning a blind eye to ads for a long time. However, the loss of over 2,00,000 subscribers in the last quarter might have opened up the eyes of the executives. Sarandos guarantees to provide a less costly watching experience with the addition of the ad-tier feature.
“We’ve left a big customer segment off the table, which is people who say: ‘hey, Netflix is too expensive for me and I don’t mind advertising,” Sarandos said in his interview with Kara Swisher at the Cannes Lion Festival. “We adding an ad-tier, we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘hey, I want a lower price and I’ll watch ads.’”
What does this mean for Netflix India? Well, the streaming giant arrived in the country almost six years ago. Still, it has not managed to solidify its position in the Indian OTT market. The cheapest subscription plan Netflix India has for its viewers is its Mobile plan: Rs. 149/month. If we compare this plan with Disney+ Hotstar’s mobile plan (Rs. 499/year), it appears to be very expensive. The lack of the ad-tier feature is one of the biggest reasons why Netflix kept its subscription prices high for so long.
The inclusion of ads will lower Netflix’s subscription plans for sure. By how much? Well, we will find out about it in future.
The presence of Ted Sarandos at this year’s Cannes Lion Festival shows that the company is dead serious about welcoming the ad industry with open arms. Plus, the Co-CEO has been chosen for this year’s Cannes Lions’ Entertainment Person of the Year award.
The ad-tier feature may bestow some amount of relief to Netflix executives. But it is not a long-term solution. We have to keep in mind that the company’s share prices are at an all-time low. Also, this unsettling scenario has sparked the talks of the company’s takeover. Stay tuned for more updates.
We’re hiring!
We are hiring two full-time junior to mid-level writers with the option to work remotely. You need to work a 5-hour shift and be available to write. Interested candidates should email their sample articles to [email protected]. Applications without a sample article will not be considered.