For the longest time, Netflix users have demanded cheaper plans. But now it may finally happen because the company, CEO Reed Hastings, has revealed that the streaming giant is testing new ad-supported plans that will be much cheaper than the current Netflix plans. Netflix has resisted adding advertisements on its streaming device, but if the user wants cheaper subscription plans, they will also have to deal with ads.
Talking about introducing cheaper plans, Reed Hastings said, “Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said during the company’s pre-recorded earnings conference. “But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.” He reiterated that it makes a lot of sense to introduce plans that are cheaper.
Hastings revealed that it will launch the service in a year or so. He also stated that the new ad-supported plans, which will be cheaper, would prove to be beneficial for the company as that would attract lot of new subscribers.
Netflix stated that the rampant password sharing, competition from the other streaming giants and the on-going Russia-Ukraine feud were some of the reasons why there was no significant rise in paid subscriptions. To bolster its revenue, Netflix did increase the price of its subscription plans in some countries, but that completely worked against the company. As around 600,000 subscribers in the US and Canada were lost due to the increased price.
Talking about whether the ad-supported plans for Netflix would work or not, Hastings said," 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.”
Netflix India subscription plans
In India, the price of the Netflix mobile plan has been reduced to Rs 149 from Rs 199, the mobile plan lets users stream videos on phones and tablets at 480p. The Basic plan allows users to stream videos and on a single mobile, tablet, computer or television screen at a time now costs Rs 199. The plan was earlier proved at Rs 499.
The Standard subscription plan that lets users stream videos in high definition now costs Rs 499 in India. The plan lets users stream videos on two different devices at the same time. The Standard plan was earlier priced at Rs 649. Now coming to the Premium plan, the plan was earlier priced at Rs 799, will now cost users Rs 649 only. The Premium plan lets users browse videos at 4K+HDR. The Premium plan lets users watch four different devices at the same time with this plan
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