Netflix to introduce an Ad-supported Tier later this year

Netflix is making a drastic turn as they plan to roll out an ad-supported tier sooner than later. The streamer is trying to make up for the loses and knocks they took in the previous financial year.  

According to the New York Times, the streaming service told its employees that they are contemplating introducing an ad-supported tier to the platform before the end of the year.  

The company’s Co-Chief Executive Officer Reed Hastings announced, “ … one way to increase the price spread is advertising on low-end plans and to have lower prices with advertising. And those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much I’m a fan of that, I’m a bigger fan of consumer choice.” 

Hastings says they have been studying other platforms and they are happy that the business model of ad-supported it does work. 

“I think it’s pretty clear that it’s working for Hulu. Disney is doing it. HBO did it. I don’t think we have a lot of doubt that it works — that all those companies have figured it out … So I think we’ll really get in.” 

By the looks of things, yes Netflix will implement an ad-supported tier, is just a matter of when. 

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