Netflix revealed its plans for below-cost ad-supported service, betting that $6.99 per month option for consumers will help this is the shore up income in more constrained economic times.
Reed Hastings, the chief executive, has abandoned his longstanding opposition to advertising. support before this yearwhen the company subscriber growth went in the opposite direction in a sign of market saturation in North America.
new advertising service that launches in November, will ‘grow up membership as well as, over time, build significant additional income and profit stream” on 12 countries This will available in next per month,” said Greg Peters, head of Netflix. operating Officer, on Thursday.
The advertising level will force Netflix will provide metrics on the number of viewers it has long resisted posting, including size of his audience. Beginning next year he will partner with Nielsen, rating service, for measurement and verification how a lot of people in The US watched ads.
Netflix subscriber warning this is year scare investors, who rejected growth-by all means worth the streaming wars and demand to see path to sustainable profit growth. This prompted Disney Plus to announce that it would be rolling. out advertising level in December for $7.99, with price increase for clients who want watch without ads. Other streaming services including Hulu, Paramount Plus and Peacock. already offer ad-supported versions.
Morgan Stanley estimates that Netflix could raise up to $3 billion a year. year from advertising in 2026, but most expected of which should be generated subscribers trading down from no ads membership tiers.
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