Netflix has officially revealed that it plans to release a version of its cheaper but ad-service. The company’s CEO said he’s still finalizing some details for him to be made official.
Reed Hastings (Netflix CEO) has revealed that the streaming organisation plans to launch the ad subscription by 2024. He says he finds the presence of advertisements complicated and is a fan of the simplicity of services, but finds it interesting to give a cheaper option to users who do not care about it.
The plan will adopt the same strategy as Hulu, Disney and HBO. Hastings says that looking at these examples, the initiative works well. He also promised that the company will not track user data to show targeted advertisements.
The streaming organisation lost about 200,000 users in the first half of 2022, blaming the loss on competition, impossibility of expanding to more territories due to technological limitations and especially account sharing.
According to Netflix data, there are 222 million signed accounts, but 100 million of them are shared with other users. In March, Netflix began additional fee testing for users who share subscriptions. Basically, it allows you to add members to an existing account for a fee.