Netflix doing the unthinkable of introducing ad-supported tier subscriptions after a harsh post-pandemic performance comedown shows that no business is safe from a declining economy. It is always beneficial to look into what your competitors are doing to remain competitive in your industry
Last Month, Netflix officially announced it would be adding a new cheaper ad-supported tier in early 2023 ranging from 7 to 9 dollars, which is about half the price of a premium subscription.
This development was first revealed in April, as the platform saw subscriber growth cool in a harsh comedown from a strong run earlier in the pandemic.
So in an effort to implement this new ad-supported tier, Netflix has also poached two Snap executives, Jeremi Gorman, Snap’s former chief business officer, who will serve as president of worldwide advertising at Netflix, and Peter Naylor, who oversaw snap advertising in North America, will step up as VP of ad sales. Both will start their new roles in September.
Lastly, I do want to add Netflix is reportedly aiming to keep its ad load light compared to others in the industry, serving just four minutes of commercial time per hour which isn’t too bad.
What do you guys think about this new development? Would you rather pay double the price for Netflix or split the price and have four minutes per hour? Let me know your thoughts.
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