Netflix currently offers basic, standard and premium plans without ads (credit: Tina Rowden / Netflix)

As previously confirmed, Netflix is ​​launching a cheaper subscription hierarchy with ads.

On Wednesday, the company announced that it would be launching a new ad support subscription plan with Microsoft.

It’s unclear how many subscribers will have to pay for the new service and when it will be available.

In April, the company announced that it would introduce a new low-cost ad support subscription plan on top of its existing plans.

Netflix CEO Greg Peters said:

to guarantee

As previously confirmed, Netflix is ​​launching a cheaper subscription hierarchy with ads (Picture: Netflix)

Netflix currently offers basic, standard, and premium plans without ads. With the new plan, the company is likely to target consumers who don’t mind being bothered by ads for less money.

Streaming companies always maintain a marketing platform and instead rely on increasing the value of their subscriptions to drive growth.

But Netflix was a tough year. The company’s stock price fell after the loss of subscribers was reported.

So it makes sense to look for advertising to help fund low-cost subscriptions to win people back.

“Netflix needs to show ads related to the show or movie it’s showing,” said Kai Hennigs, a video advertising expert.

“It’s also important that Netflix establish and maintain standards for the quality and beauty of ads, enriching the user experience rather than compromising it.”

According to the company, it lost 200,000 subscribers in the first quarter and missed the forecast of 2.5 million additional subscribers. The service interruption in Russia following the invasion of Ukraine also cost 700,000 Netflix members.

Subscriber losses may be due to the end of the streaming boom caused by the pandemic. This is because households canceled a record number of video subscriptions earlier this year.

It is asking Netflix for comment.