JAKARTA - Netflix co-founder and co-CEO Reed Hastings plans to make a cheaper subscription package, but later the streaming service will be filled with advertising support.
In reporting the loss of subscribers for the first time in more than a decade, Netflix revealed it was considering an ad-supported plan for a lower subscription fee.
"(We are) quite open to offering lower prices with advertising, as a consumer choice," Hastings said in the company's earnings call yesterday.
Apparently, the company is now looking into options and is trying to figure out over the next year or two about the planned price change.
Hastings acknowledged that introducing an ad-supported subscription plan would be a big change for the company. However, this is something that makes a lot of sense for consumers who want to get lower prices and are tolerant of advertising.
Even so, the success of Netflix's proposed ad support service will largely depend on how much the company decides to charge, as well as its ability to maintain an engaging content library, and outperform those offered by its competitors.
However, Hastings added that the ad-supported service is unlikely to land for at least a year, meaning that for now customers will still be paying $9.99 per month for the base plan, $15.49 for the base plan. thousands for the standard package, and 19.99 US dollars, approximately IDR 286 thousand for premium services.
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Hastings estimates that Netflix will lose another 2 million subscribers in the current quarter. He puts the toll on factors such as increased competition from rivals, the war in Ukraine, and password sharing, a practice Hastings says is practiced by some 100 million households today.
He added that the surge in registrations during the pandemic is now out of control, as people start going out more after the vaccine.
For your information, Netflix will be far from being the only company to introduce an ad-supported plan. Competitors like Hulu, Peacock, and even HBO Max offer plans that allow consumers to pay less.
Disney has also announced that it will be adding an ad-supported option to Disney Plus by the end of the year. This is quoted from The Verge, Wednesday, April 20.
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