Netflix to introduce new plans for subscribers

Netflix has announced cheaper ad-supported plans for their subscribers.

The new plan which will be introduced to subscribers will boost its already existing 200 million subscribers and may take effect in the next two to three years.

The streaming giant’s co-founder and CEO Hastings Reed, admitted the new plan will be a major shift for Netflix who had over the years sustained that the idea of introducing ads on the platform was not well suited to the company’s style.

“Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I’m a fan of that, I’m a bigger fan of consumer choice,” Hastings said.

“Allowing consumers who would like to have lower price and are advertising tolerant get what they want makes a lot of sense,” he added while confirming that the new plan will not be ‘short term fix.’

Hastings added that the ad model had matured over the years and proven successful with competing platforms such as Disney and Hulu.

According to Hastings the streamer lost 200,000 subscribers in the first quarter mostly as a result of password sharing.

Pulse/ Stephanie .S.