Netflix to introduce cheaper subscription plans with ads

Netflix's ad-supported subscription plans are not a figment of our imaginations; after all, the company has confirmed that it will implement them soon. The company's CEO, Ted Sarandos, has confirmed that he plans to introduce an ad-supported tier to his roster in an interview at the Cannes Lions ad festival, The Hollywood Reporter confirms. A report from The New York Times previously confirmed that the company plans to launch the plans by the end of this year.

Netflix is in dire need of new subscribers. During an earnings call, the company announced that it had close to 2 lakh paid subscribers. The drop in paid subscribers has stunted the company's revenue growth. That is also a reason why the company has shed nearly 300 employees in a span of six months. However, ad-supported plans may make things a bit better for the company now, as they are expected to be cheaper.

"We've left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me, and I don't mind advertising,'" Sarandos said Thursday, during the Cannes Lions stage with Sway podcast host Kara Swisher. "We adding an ad tier; we're not adding ads to Netflix as you know it today. We're adding an ad tier for folks who say, 'Hey, I want a lower price, and I'll watch ads."

Netflix is currently the most prominent streaming giant with close to 222 million subscribers, but the loss of paid subscribers in the first quarter of 2022 has hugely impacted the company. The company is still trying to get out of the hit caused by the loss of subscribers. It affected the streaming giant's business; many employees had to leave their jobs at Netflix.

According to The Variety, Netflix confirmed that it "has sadly laid off 300 employees." The report reveals that the majority of job losses have occurred in the US and across multiple business divisions. Variety reports that Netflix has a total of 11,000 employees. So the latest layoffs have affected about 2 percent of their workforce.

"While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth," the Netflix spokesperson said in a statement on Thursday. "We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."