Most Viewed Content:

OpenAI Launched Assistants API, Allowing Developers to Customize AI Assistants with One Click

At today's OpenAI's first developer conference, OpenAI launched the...

Toyota responds to continued production cuts in the next 3 months: easing pressure on dealer earnings

In response to the news that "production will continue...

Google to bring PWA application backup & restore function for Chrome/android

According to thespAndroid reports, GitHub's Chromium repository recently added...

Netflix plans to introduce ad-supported low-cost plan

Netflix co-founder and co-CEO Reed Hastings said on Tuesday’s earnings call that the company is “quite open to offering even lower prices with advertising, as a consumer choice” after years of rejecting calls for an ad-supported streaming tier.

If you’d like to know more, you’ll have to wait a few years and see what happens. A shift in strategy for Netflix, as Hastings acknowledges, would be “against the complexity of advertising and a big fan of the simplicity of subscription,” if the company were to implement an ad-supported model.

“Consumers who want to pay less but are willing to put up with advertising” are now being targeted by Netflix CEO Reed Hastings.

Netflix-logo

As of Tuesday, Netflix appeared more receptive to ideas it had previously rejected after reporting that it had lost subscribers for the first time in a decade. The value of Netflix stock fell by a quarter. Earlier this week, the company announced that its subscriber base had decreased in the first quarter of the year. In a decade, the most popular streaming television service saw its subscriber base shrink for the first time. In a statement, the company blamed Russia’s invasion of Ukraine for the quarter-over-quarter decline.
As of March 31, Netflix had 221.6 million subscribers, a slight decrease from the end of last year’s first quarter. Net income for the most recent quarter was $1.6 billion, down from $1.7 billion in the year-ago period for the tech company based in Silicon Valley. Following the release of the earnings results, Netflix shares fell by 25% to $262 in after-market trades.

Even if Netflix were to launch an ad-supported service, it wouldn’t be the first. Hulu, Peacock, and even HBO Max have plans that allow customers to pay less (or, in Peacock’s case, nothing) in exchange for having their shows occasionally interrupted. In addition, Disney has announced that by the end of the year, it will offer an ad-supported version of Disney Plus.

Netflix believes that the lack of affordable broadband internet service and smart televisions, as well as subscribers’ sharing their Netflix accounts with people who are not in their homes, is stifling its growth. As many as 222 million households are paying for Netflix, but more than 100 million other households don’t pay for the service, according to the streaming giant.

When it comes to monthly fees, Netflix currently charges Rs. 149 for the mobile plan, Rs. 199 for the basic plan, Rs. 499 for the standard plan, and Rs. 649 for the premium plan. While Netflix CEO Reed Hastings says he is proud of the company’s “price spread,” the company’s deep market penetration means that Hastings has limited options for increasing revenue other than raising prices. One way the company might increase its customer base and open up new revenue streams is by offering a free or low-cost tier that is supported by ads.

Latest

Huawei Pura 70 series are testing 4 models, including super large cup Ultra Edition

Digital blogger @digitalchat.com posted today that there are 4...

Great Wall Motorcycle Technology unveiled at the 2024 Beijing Auto Show

During today’s Great Wall Motors NOA live test, Great...

Oppo Find X7 is expected to launch white edition, purple edition will be discontinued

The OPPO Find X7 standard version phone was released...

Tecno Phantom V2 Fold/Flip exposed, with Dimensity 9000+/ Dimensity 8020 SoC

Tecno’s first foldable screen phone Phantom V Fold was...

Newsletter

Don't miss

Huawei Pura 70 series are testing 4 models, including super large cup Ultra Edition

Digital blogger @digitalchat.com posted today that there are 4...

Great Wall Motorcycle Technology unveiled at the 2024 Beijing Auto Show

During today’s Great Wall Motors NOA live test, Great...

Oppo Find X7 is expected to launch white edition, purple edition will be discontinued

The OPPO Find X7 standard version phone was released...

Tecno Phantom V2 Fold/Flip exposed, with Dimensity 9000+/ Dimensity 8020 SoC

Tecno’s first foldable screen phone Phantom V Fold was...

Store Expects Huawei’s Pura 70 Series Phones by Month End, Possibly April 18

According to the "Blue Whale News" of the Financial...
Neelakshi Sinha
Neelakshi Sinhahttps://www.techgoing.com
TechGoing is our last tech stories about mobiles, smart home, EVs, and tech gadgets. Take your time and immerse yourself in this amazing experience!

Redmi Turbo 3 listing appears, opens reservation

The Xiaomi Redmi Turbo 3 will be released on April 10. The phone is positioned as a mid-range phone and will be equipped with...

Suspected new Nio ET7 car is expected to debut at the Beijing Auto Show

We obtained a set of suspected new Nio ET7 real car spy photos from the domestic Internet platform, and some netizens revealed that the...

Ministry of Commerce: Chinese EVs Lack Subsidy Advantages

Minister of Commerce Wang Wentao hosted a roundtable meeting of Chinese electric vehicle companies in Europe in Paris, France. Representatives from the China Chamber...