How Ads on Netflix Will Change the Way You Watch
Streaming experiences are going to change as ads become more prevalent
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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