The imminent launch of Netflix’s new ad tier has the potential to be a streaming game changer—both for Netflix’s users and its bottom line.
After losing nearly 1.2 million subscribers in the first two quarters of 2022, Netflix said in its third-quarter earnings report on Tuesday that it added 2.4 million subscribers, higher than the 1 million the company had projected last quarter. It also forecast a gain of 4.5 million subscribers for the fourth quarter. This much-needed boost comes as Netflix is gearing up to roll out its new ad-supported, lower-priced subscription tier in early November. The ad-based plan will allow subscribers to cut their Netflix costs by 20-40 percent in exchange for a few more interruptions.
With the streaming industry becoming oversaturated with competitors, analysts say Netflix’s push into advertising is a move that could help jumpstart the streamer’s growth by enticing budget-conscious consumers to sign up for the service.
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