After all, Netflix ad-supported subscription plans are not a figment of our imagination; the company has confirmed that they will be available soon. The Hollywood Reporter confirms that company CEO Ted Sarandos confirmed plans to add an ad-supported tier to its list during an interview at the Cannes Lions advertising festival. The New York Times previously reported that the company intends to launch the plans by the end of this year.
Netflix desperately needs new subscribers. During an earnings call, the company announced that it had nearly 2 lakh paid subscribers. The decline in paid subscribers has stifled the company's revenue growth. That is also one of the reasons why the company has let go of nearly 300 employees in the last six months. However, because ad-supported plans are expected to be less expensive, they can help the company now.
"We've missed out on a large customer segment, which is people who say, 'Hey, Netflix is too expensive for me, and I don't mind advertising,'" Sarandos made the announcement on the Cannes Lions stage with Sway podcast host Kara Swisher on Thursday. "We're adding an ad tier; we're not adding ads to Netflix as it currently exists." We're introducing a new ad tier for people who say, "Hey, I want a lower price and I'll watch ads."
Netflix is currently the largest streaming giant, with nearly 222 million subscribers, but the loss of paid subscribers in the first quarter of 2022 has had a significant impact on the company. The company is still trying to recover from the blow of the subscriber loss. It has not only had an impact on Netflix business, but many employees have had to leave the company.
According to The Variety, Netflix has "sadly let go of 300 employees." According to the report, the majority of job losses have occurred in the United States and have occurred across multiple business divisions. As per the Variety, Netflix employs 11,000 people. As a result, the most recent round of layoffs affected approximately 2% of its workforce.
"While we continue to make significant investments in the business, we have made these adjustments to help our costs grow in line with slower revenue growth," a Netflix spokesperson said in a statement on Thursday. "We're so grateful for everything we've done for Netflix and working hard to support them through this difficult transition."
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