Currently, Netflix is in a problematic situation. having so far seen a 1.17 million subscriber drop in 2022. Prior to 2022, Netflix has never actually reported a subscriber loss. This led the business to consider a potentially less expensive ad-supported tier. This is so that the advertisements may make up the cost difference.

In light of the new ad-supported tier, a recent report from the Wall Street Journal claims that Netflix anticipates having roughly 40 million unique viewers by this time next year. These revised figures, it appears, were communicated to ad purchasers. The US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK are the countries on which it largely focuses.

It’s crucial to remember that subscribers and unique watchers are two separate things because many people share their Netflix subscription with family members.

Advertisement NETFLIX STILL HAS NOT Stated HOW MUCH THIS NEW PLAN WOULD COST Although many anticipate it to be priced under $10 per month, Netflix hasn’t yet confirmed how much this new ad-supported tier would cost. more likely $7 or $8. In this case, Netflix may get even more subscribers if they can keep the price that low.

Even though we all detest advertisements, many people would rather pay less for an ad-supported streaming service than a service without. Therefore, it makes sense that so many other services offer both an ad-supported and ad-free tier. similar to HBO Max, which offers ad-free service for $14.99 per month and does so for $9.99 per month.

Netflix’s biggest problem is that the majority of the content it licensed cannot be aired with advertisements. It suggests that the library on the ad-supported tier might be less. This is due to the fact that many studios will provide various license options for services that show advertisements versus those that do not. This is mostly due to the studios receiving a share of the advertisements. Since Netflix has never had advertisements, they are currently revising its agreements with other studios.

Advertisement By the end of 2022, Netflix’s ad-supported tier is anticipated to go live.

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