After months of speculation, and the company itself indicated that the move was inevitable, Netflix Proved that it will have a cheaper advertising subscription.

The ad came Ted Sarandos, Netflix CEO. According to the manager, this proposal will be aimed at anyone who considers the current price of the platform to be high prices. Also, they will not have any problems View ads When viewing content.

Sarandos, on the other hand, notes that over the years he has forgotten to address the problems of this segment of consumers, but that will change. However, he does not mention it andIt is clear that this strategy has nothing to do with the reduction of subscribers (200,000) Suffered from the platform in the last quarter. More worryingly, they estimate there will be a loss of about $ 2 million in the current period.

How the new Netflix subscriptions will work

An important point that Netflix wants to clarify is this The introduction of ads will not affect the current plans. The idea of ​​this service is to introduce a completely new subscription kit as an entry option.

“We left a large segment of users at the table, these are people who say, ‘Look, Netflix is ​​too expensive for me and I’m not interested in advertising. We add a new level of advertising; We do not add ads to Netflix as you know it today. We increase the level of advertising for people who like: “Look, I want a low price and I will look at the ads.” Noted Ted Sarandos.

Not yet. They have not shared more details about it yet. It will take a few months to figure out how to place the ads and of course The price they are going to set. The latter will be the main one.

According to the Wall Street Journal, Netflix’s advertising system can have three partners: Roku, NBCUniversal And an advertising giant Internet: Google. “We are still in the early stages of deciding to implement a lower cost ad-based option, so the decision has not yet been made,” a platform representative said before announcing the new registration.

Netflix wants to reach its customers by improving the quality of its products

Given the complex panorama Netflix is ​​currently experiencing, in which consecutive quarters show no sign of growth after the virus has spread. Pandemic, Sarandos realizes that making purchases does not hurt. However, he also said that they have enough resources to defend themselves. “We have a large scale, profitability and free cash flow to continue to develop this business.

At Netflix, they see their stock values ​​fall as a result of market fears when the industry is relatively young, Flow, He has a hard time.

“We have experience when the market is disconnected from our core business and you have to prove that it is still working and will continue to work in the long run. There is a lot of uncertainty in the world today, And if something happens that shakes the basis of the narrative, they get nervous. “ He added.

Whether cheap subscriptions to ads will become Netflix’s lifeline is only a matter of time. It is known that millions of subscribers are dissatisfied not only with the current prices, but also with them Low quality service on most of its original products. In this regard, the company is committed to focusing its strategy on quality rather than quantity.

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