Recently, we heard that Disney confirmed that their Disney+ streaming service would be getting an ad-supported tier later in the year. This would be a new tier that’s priced lower than the current option but will come with ads. With Disney+ making this move, many wonder if Netflix will eventually follow with something similar.
Speaking at Morgan Stanley’s 2022 Technology, Media & Telecom Conference, Netflix CFO Spencer Neumann has ruled that out. According to Neumann, “It’s not like we have religion against advertising, to be clear. But that’s not something that’s in our plans right now. We have a really nice scalable subscription model, and again, never say never, but it’s not in our plan.”
He adds, “It’s hard for us to kind of ignore that others are doing it, but it now doesn’t make sense for us.” We should note that Netflix has come under fire over the years for its ever-increasing subscription prices, but this is to be expected due to the fact that as Netflix invests more into original programming, increasing subscription prices is one way for them to earn their money back.
Neumann says never say never, but for now, if you were hoping that Netflix will make the jump to an ad-supported tier, it is not in the plans.
Source and Image Credit Ubergizmo