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Netflix with adverts coming this year as streaming service launches cheaper plan

By Emma Munbodh & Lorna Hughes

A cheaper Netflix plan with adverts will be launched later this year as the streaming service bids to win back 200,000 lost subscribers. Plans for the value plan have been brought forward after the company's quarterly figures revealed the huge number of customers quitting the service in just three months.

The cost of living crisis has meant hundreds of thousands have kicked their Netflix habit as other bills take priority. The service has also faced intense competition from other streaming services, including Disney+.

In April Netflix said its numbers had fallen for the first time in a decade, the Mirror reports. It lost 200,000 customers against a target of adding 2.5million new subscribers.

Reed Hastings, Netflix's co-chief executive, said at the time that the company was considering introducing adverts on a cheaper subscription package, and would “figure it out over the next year or two.” However a note to employees, obtained by The New York Times, revealed the new cheaper offering is now pencilled to be brought in in the final quarter of this year.

The note said: "Yes, it's fast and ambitious and it will require some trade-offs. Every major streaming company excluding Apple has announced an ad-supported service. For good reason, people want lower-priced options.”

Netflix executives said the advertising-supported tier would be introduced “in tandem with our broader plans to charge for sharing.” In March, it hinted at plans to start charging people extra for sharing accounts with people outside of their household.

Research by hotukdeals found 38% of people would be happy to pay less for TV subscriptions if adverts were shown. When asked which platforms they would be happy to pay less for over half - 56& - said they would be happy to watch adverts on Netflix for a cheaper price. And 51% said the same for Amazon Prime and 44% for Disney+.

For more stories from where you live, visit InYourArea.

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