Netflix Co-CEO Confirms Cheaper Subscription Plans With Ad Support

Netflix subscription with ads confirmed (photo: Unsplash)

JAKARTA - Netflix Co-CEO, Ted Sarandos confirmed that the company plans to offer lower subscription prices with advertising support.

Sandaros revealed, many people say that Netflix subscriptions are too expensive, starting from IDR 54,000 to IDR 186,000.

So, not a few are asking for a cheaper price even though it is equipped with advertisements.

"We [are] adding an ad tier, we're not adding an ad tier to Netflix as you know it today. We're adding an ad tier for people who say, 'Hi, I want lower prices and I'm going to watch the ad.' he explained in an interview at the Cannes Lions advertising festival, quoted by The Hollywood Reporter.

Previously, in May, the Californian company said it would accelerate the launch of low-priced subscription packages that contain ads by the end of this year.

Netflix made the announcement to its employees. In the note, the Netflix executive also mentioned his goal to introduce an advertising subscription plan in the last three months of the year.

This plan seems to be done by Netflix when it sees the success of its competitors, HBO and Disney+ who are doing the same.

In addition, last month's first quarter earnings announcement, Netflix has lost 200,000 subscribers in the first three months of this year.

This is the first time this has happened in a decade and is expected to lose another two million in the months to come.

Since the announcement of the subscriber drop, Netflix's stock price has fallen sharply, wiping out roughly $70 billion in the company's market cap.

Photo: Netflix subscription with ads confirmed (photo: Unsplash)