Netflix is currently considering a cheaper subscription that would include advertising in return. Reed Hastings, head of the streaming service, mentioned this point after the publication of the Group's financial results.
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A cheaper Netflix subscription with ads is under consideration, but it won't arrive for another year or two, according to Reed Hastings :
Those who have followed Netflix know that I've always been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I'm a fan of that, I'm a bigger fan of consumer choice. And allowing consumers who want a lower price and tolerate advertising to get what they want makes perfect sense. So that's something we're looking at right now. We're trying to figure that out over the next year or two. But consider that we are quite open to the idea of offering even lower prices with advertising as a consumer choice.
It has to be said that Netflix is very expensive when compared with the competition. For example, Amazon Prime Video is available for 5.99/month or €49/yearand Disney+ for 8.99/month or €89.99/year. There's also Apple TV+ at €4.99/month. Opposite, Netflix starts at €8.99/month. But for this price, there's no HD, Full HD and even less 4K. What's more, usage is only possible on one device at a time. Then there's a €13.49/month offer (HD/Full HD and two screens at a time) and a €17.99/month offer (4K and four screens at a time).
Even so, there's no guarantee that prices won't rise. There have been increases in a few countries in recent months. The most recent is Ireland, where rates are now between €8.99/month and €20.99/month.
It has to be said that Netflix is starting to lose ground to the competition. The announced having lost 200,000 subscribers in the first quarter, a first in over 10 years. A cheaper Netflix subscription with ads could therefore be a way of attracting new subscribers. It could also be a way of competing with Disney+. which has already announced launch a cheaper offer with advertising.
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