Netflix Could Offer Cheaper, Ad-Supported Subscription Tiers in the Future

If you're looking for a cheaper alternative to the subscription tiers Netflix offers, now is the time to get excited.

Netflix Co-CEO Reed Hastings mentioned in the company's latest quarterly investors' earnings interview that it could feature ad-supported subscription tiers in the future, per CNET.

It is unknown when Netflix will announce more details about its plans at the time of this article's publication.

Netflix Ad-Supported Subscription Tiers Details

According to CNET's report, Netflix, as a company, is looking at ways to offset the recent price increase made to its subscription fees so users could choose a cheaper alternative should they feel like the increase is too much.

Although Hastings admits that he was against the idea of bringing in advertisers since the beginning, he now changed his perspective in favor of consumer choice, adding that competitors embracing ad-supported subscription tiers played a role in changing his mind, per Hollywood Reporter.

He said that allowing consumers who would be tolerant of the advertisements that come with the plans and would like to avail of Netflix's streaming services at a lower price "makes a lot of sense."

"One way to increase the price spread is advertising on low-end plans, Hastings said during the latest quarterly investors' interview. "Think of us as quite open to offering even lower prices with advertising as a consumer choice.

Hastings also added that when Netflix does launch ad-supported subscription tiers, it would do so as a publisher and without the data tracking and ad-matching some companies do.

Unfortunately, Hastings didn't go into detail about its plans on creating ad-supported subscription tiers for users. Whether we'll see ad-supported subscriptions versions of its basic, standard, and premium subscription plans or not is uncertain until the company officially announces these ad-supported subscription tiers.

What Ad-Supported Subscription Tiers mean To Netflix

Engadget believes that ad-supported subscription tiers could make sense for the company as it recently lost around 200,000 subscribers in the first quarter of 2022. Netflix credited most of these losses to stiffer competition and the company's inability to expand in some territories due to technological limitations and account sharing.

You may remember that the company recently launched two new features in its platform but are still being tested and only released in Chile, Costa Rica, and Peru. These features, which allow Netflix account holders to add an extra member or transfer profile information to a new account or an extra member sub-account, made it simpler for people who live together to share a Netflix account.

The fee for extra members is priced at 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru.

The company also increased prices starting March 30, according to a separate report from The Verge. The company's subscription fee for its basic plan now costs $9.99 per month, while its standard and premium tier now has a price tag of $15.49 and $19.99 per month, respectively, per Netflix's price matrix.