Netflix is keen on winning back the subscribers it has lost recently and will introduce a cheaper subscription tier that will include ads next year.
You might have ditched Netflix recently because the cost of living is rising sharply and a tank of petrol will set you back a lot more than it did a year ago, but maybe you’re keen on getting the service back since they announced a cheaper tier is on the way.
The new tier, which will become an option next year, will include ads and will help Netflix tackle their revenue loss. The company is struggling to attract new customers or even bring the old ones back, but hopes that a cheaper option will do the trick.
Now, as reported by The Times, Netflix’s co-CEO Ted Sarandos has revealed that the cheaper tier won’t actually include all of the streamer’s catalogue. This is due to the various different deals with producers and for example, BBC programmes might be affected.
“If it’s a BBC original production, BBC licence funding can’t be supported with advertising,” said John McVey, the chief executive of Pact, a UK producer trade body.
“There’s some things that won’t [be available] and we’re in conversations with the studios on, but if we launched the product today, members in the ad tier would have a great experience,” Sarandos told his investors on Tuesday.
Netflix is also trialling a new scheme which would charge people extra for adding “a second home.” Netflix has been trying to stop people from sharing passwords and this measure feels like a big move forward on that.
The company will commence the test run in countries such as Guatemala and Argentina next month. Customers can add another location to their account for an additional $2.99 a month and can remove “homes” whenever. If successful and viable, Netflix is looking to introduce the extra charge globally as early as later this year, according to the BBC.
This comes after Netflix lost yet another 1 million subscribers between April and July. Although the company predicted they would lose more subscribers than that, it’s still a lot of eyeballs that aren’t watching their content and bank accounts that won’t be paying out a monthly fee.
The latest season of Stranger Things has proven to be wildly successful and very important for Netflix. The acclaimed fourth season was aired in two parts, with a spine-tingling finale that left viewers in tears. They also just scored big as Squid Game made history as the first ever show not-in-English language to be nominated for several Emmys, including Outstanding Drama Series.