During an interview at the Cannes Lions advertising festival, Ted Sarandos, the CEO of Netflix, stated that the company has plans to offer a tier of its service that is financed by advertisements.
Netflix has stated that it will be bringing out membership options that are funded by advertisements.
The plans are expected to be implemented by the corporation by the end of this year, according to a report that was previously published in the New York Times.
Netflix At an earnings call, it was reported that the company had over 2 million paying customers.
After all, the ad-supported subscription options that Netflix has been rumoured to be releasing are not a creature of our mind; the business has acknowledged that they will be released shortly. During an interview at the Cannes Lions advertising festival, the CEO of the company, Ted Sarandos, acknowledged that the company intends to introduce an ad-supported tier to its list of offerings. This information was corroborated by The Hollywood Reporter. According to a story that was published by The New York Times in the past, the business has indicated that they want to debut the plans before the end of this year.
The streaming service Netflix is looking for new members desperately. During an earnings call, the firm said that it had around 200,000 paying customers at the time of the announcement. The decline in the number of paid members has stifled the company’s ability to increase its income. That is also one of the reasons why the corporation has let go of close to 300 workers in the span of just over six months. On the other hand, the fact that the ad-supported plans are anticipated to have lower prices makes things somewhat more favourable for the corporation right now.
People who say things like “Hey, Netflix is too costly for me and I don’t mind advertising” are not included in the customer base that we are targeting since “we’ve left a major consumer segment off the table.” Sarandos stated this on Thursday during the Sway podcast presenter Kara Swisher’s appearance on the Cannes Lions stage. “We are adding an ad tier; nevertheless, we will not be bringing advertisements to Netflix in its current form.” We are introducing a paid advertising tier for customers who have expressed interest in paying a reduced fee in exchange for viewing advertisements.
Netflix is the greatest streaming powerhouse at the moment with close to 222 million customers, but the drop in paying subscribers in the first quarter of 2022 has had a significant impact on the corporation. The drop in subscribers has been a significant blow to the firm, and they are currently working hard to recover from it. Not only has it had an effect on the company’s overall operations, but it has also forced a significant number of people to leave their positions at Netflix.
Netflix has reportedly revealed to The Variety that it had “very regrettably let go of 300 people.”
According to the findings of the survey, the majority of job cuts have been incurred in the United States and have taken place across a variety of economic sectors. According to Variety, Netflix currently has 11,000 people working for the company. As a result, the most recent wave of layoffs affected around two percent of the company’s staff.
“While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth,” a spokesperson for Netflix said in a statement on Thursday. “These changes were made so that our costs are growing in line with our slower revenue growth.” We owe them a huge debt of gratitude for everything they’ve done for Netflix and we’re doing everything we can to help them weather the storm of this challenging change. Watching Live TV