The streaming service that people subscribed to because they didn’t have to watch ads is now possibly adding ads to their content.

This change is coming into play after having a rough start to the new year. The streaming service stated that they lost 200,000 subscribers between January to March. Netflix is struggling as more and more streaming services are coming out and the competition is heating up. People are inclined to go and subscribe to a streaming service that is lower priced, and that is what Netflix is noticing. This lower priced tier plan hopefully will attract more people to get Netflix, rather than other streaming services. 

The CEO, Reed Hastings, has been against advertising but a major fan of the simplicity of subscription. He feels that this is the best way to go about after the loss of subscribers. This process wasn’t expected to go as fast as it is, but ads seem to be headed to Netflix within the next few months. Making money and not having their stock plummet is the whole reason behind this new idea. If Netflix can get more subscribers by having a cheaper subscription, but adding ads to it, that’s what will be done in Hastings eyes.

“I think having a plan that’s cheaper is a good idea but I’m just glad that you can choose if you want ads or not,” Senior Lexi Donohue commented about her thoughts of this new plan.

There is so much competition that Netflix has, like HBO Max and Hulu, that offer an ad supported service. Netflix notices that companies like these still are able to maintain a strong brand even with ads playing during the shows. Many major streaming companies have come out with an ad supported service, giving subscribers the chance to have the option of paying less money. The price of Netflix has increased tremendously over the past few years so having this lower priced tier is a wise choice. Netflix is hoping this plan will bring in more subscribers. 

Netflix is known for having a brand by that delivers an ad-free experience, which differentiates them from other streaming services. Introducing ads now will be a major shift for the companies and is proof that the competition is heating up. It is clear that other companies have figured it out and are doing just fine, so why can’t Netflix hop on the bandwagon?

It will be interesting to see how well this plan takes off and if it will attract more subscriptions!