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Netflix to introduce ad-supported plan in future

Following the news of Netflix’s first subscriber loss in over a decade, Netflix has announced it has plans to explore a cheaper ad-supported tier for its platform in the future.

Netflix lost 200,000 subscribers in the first quarter of 2022, with many consumers cutting down on streaming platforms in order to cut down on bills amid rising living costs in many countries, in addition to the company pulling out of Russia.

Zalando Implications

Netflix has always resisted calls to launch an ad-supported tier of their platform, constantly denying rumours and saying they would not do it when asked about it, however their Q1 results have changed things in this respect. The company has been forced to look at other ways to increase their subscriber base and many have commented that Netflix should have adopted an ad-funded tier a long time ago. If and when this happens this could be great news for advertisers with Netflix one of the most popular VOD platforms worldwide.

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