According to a report from Bloomberg, Netflix might price its advertising-supported tier from $7 to $9 a month, which is half the current price of the current offer plans.
Currently, the offers plans stand at $9.99, $15.49, and $19.99 per month. This could be a significant saving for users, depending on their current plan.
This report is coming after Netflix revealed the firm lost subscribers for the first time in over a decade. Now the streaming platform intends to attract subscribers who will be willing to sit through advertisements for the sake of a lower monthly fee, even after condemning the idea of ads for years.
After Microsoft Corp won rights to Netflix’s exclusive advertisement technology and sales partner, the firm will handle most of Netflix’s advertising.
The big problem
It is no news to anyone that Google and Apple are making the lives of people in the advertisement sector harder. If advertising is the future of Netflix, which is viewed on Apple and Google devices, the firm might have chosen the wrong time to finally go back on its words on ads.
Furthermore, Netflix also started publishing its own games. Nextflix Games have been received with mixed opinions, reporting less than one per cent of its subscribers are playing its games. Nonetheless, the firm still exceeded 13 million downloads so far.
In its attempt to break into the games industry, Netflix acquired Next Games back in March for a total of $72 million, further recruiting Rekko Ukko as Chief Creative Officer to help guide its team to develop and deliver delightful and engaging games to Netflix members around the world.
However, with Apple and Google tightening their ad and privacy policies, what will come of Netflix’s business recent ventures?
Concerns have been expressed, with Alex Gurevich stating that Apple’s privacy overhaul may lead to massive adverse effects on SMBs.
On the other hand, Google’s new ads and privacy policies taking effect next month could create a new barrier for the hypercasual market.
Netflix, which came in 26th place on our top 50 mobile game makers of 2022, will have to find a way to work around these possible obstacles if it attends to allow ads on its streaming service and games.