On the side of OTT spectrum, Netflix comes on the expensive side. Netflix has always seen to be working on its game plan. Apart from this, there are several platforms in the competition that are spiking.
Recently, there are several rumors claiming about the ads-based Netflix subscription plans. Finally, this rumor got its confirmation from the parent company – Netflix.
Netflix new Ads supported cheaper subscription plans
In January-March quarter, Netflix had faced a note-able decline of nearly two lakh subscribers. An introduction of new tier by Netflix will be ads-supportive. Earlier this week, in an interview at the Cannes Lions advertising festival, the co-CEO of Netflix Ted Sarandos revealed a lot.
He stated that as of today, the streaming giant do not have ads to the Netflix. But, for the users who want lower prices, the platform will release an ads-tier.
A Hollywood Reported quoted about what Sarandos said in an interview. He said, “we think we’ve overlooked a key customer segment, which is people who say – Netflix is too expensive for me and I don’t mind advertising.”
Release of ad-based plans
At first, Netflix rejected all the claims of the ads-based plans reports on its platform. But, due to the rising competition, the OTT platform Netflix is working on ads supported subscription plans and changing its strategy.
In a recent Interview with Engadget, Netflix spokesperson said, “We are still in the early days of deciding how to launch a lower priced, ads supported option and no decisions have been made. So this is all just speculation at this point.”
This clearly means that the platform is working on the ads-based tier. Due to the loss of huge chunk of its subscribers, the Netflix CEO has confirmed the news as well.
Recently, a Netflix CEO co-CEO reed Hastings also hinted the same in a post earnings call for January-March. He also mentioned that, “I’m a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice and supporting consumers who would like to have lower prices and are advertising-tolerant to get what they want.”
While adding more, he also hinted that the company planned to figure this out in a year or two. He mentioned that, “Think of us as quite open to offering even lower prices with advertising.”
With these statements, its confirmed that the OTT dynamics in India will surely alter a lot. For now, a basic plan costs Rs. 149 in India.