Netflix confirms launching ad-supported cheaper subscription plans

Netflix has stated that its ad-supported membership tiers will launch shortly, proving that they are not just fiction in our minds. According to The Hollywood Reporter, the company’s CEO Ted Sarandos stated in an interview at the Cannes Lions advertising conference that it intends to add an ad-supported tier to its roster. The corporation intends to debut the plans before the end of this year, according to an earlier story by The New York Times.

Netflix desperately needs more subscribers. The company said that it has around 2 lakh paying customers during an earnings call. The company’s revenue growth has been hindered by the decline in paid members. That is also one of the reasons the business let go of close to 300 workers in less than six months. The ad-supported plans, though, can help the corporation immediately because they are predicted to be less expensive.

With around 222 million customers, Netflix is presently the biggest streaming platform, but the firm has been severely hampered by the loss of paying subscribers in the first quarter of 2022. The business is still working to recover from the shock of losing subscribers. Not only has it had an effect on the streaming giant’s operations, but so many Netflix staff had to lose their jobs as a result.

According to The Variety, Netflix has “unfortunately let go of 300 staff.” According to the research, employment losses have primarily occurred in the US and have affected a variety of economic sectors. According to Variety, Netflix employs 11,000 people in total. Therefore, the most recent wave of layoffs affected 2% of its employees.

The Netflix spokesperson said in a statement, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”