Netflix’s ad-supported plan will Cut Subscription Costs by half

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Netflix is undergoing quite drastic changes, as the streaming company has had to make some adjustments both in terms of business and content. However, the last of them may be the first to make the platform cheaper.

According to Bloomberg, Netflix is already considering setting a price for its ad-supported plan in the range of $7 to $9 for a standard package, which is currently set at $15.49, although this new budget option may remain in effect until 2023. The strategy will be aimed at attracting new potential customers who may want to tolerate a few minutes of advertising in between binge sessions, but how much advertising will Netflix impose on this plan?

Well, according to the same report, at the ad-supported level, Netflix users will watch 4 minutes of ads for every hour of normal viewing time to take advantage of this discount. This strategy was mentioned earlier in the company’s internal memos, taking into account its competitors HBO Max and Hulu, which currently offer plans with ads that have contributed to their growth. This book will also be copied by Disney Plus towards the end of the year, starting on December 8, at a price of $7.99, which is the current cost of its regular maintenance.

While the exact rollout date for Netflix’s ad-supported plan is somewhere between the end of 2022 and 2023, there have already been some dirty tests in some parts of Latin America to restrict the exchange of Netflix passwords. Such tests have some confusing results for the end user. Most of the changes at Netflix came amid news earlier this year that the company was losing subscribers, despite the fact that the actual numbers are not as bad as expected and Netflix remains a profitable business.

Oddly enough, Netflix and Hulu are the only two streaming companies that actually make more money than they spend, and this position is largely due to their early entry into the streaming wars, although it is quite typical for fast—growing technological unicorns not to pay much attention to them. profitability. Instead, the sudden cessation of growth has dealt a big blow to Netflix shares, especially now that Disney Plus, Amazon Prime Video and HBO Max have a growing influx of users.

Cancellations are also the order of the day, and the poorly reviewed Resident Evil is the last show to be canceled. Meanwhile, House of the Dragon and Rings of Power prove that other streamers are spending money as if there is no tomorrow.

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