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Netflix Exploring Ad-Supported Tier at Lower Cost, Co-CEO Reed Hastings Says

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Tuesday’s call. “And allowing consumers who would like to have a lower choice and are advertising tolerant get what they want makes a lot of sense.

That’s something we’re looking at now and figure out over the next year or two, but think of us as quite open to offering even lower prices with advertising as a consumer choice.”Hastings added that such a move was not a “short term fix” to attracting more consumers or driving more revenue.

The call’s moderator pointed out that Hastings in the past has been hesitant about introducing ads to Netflix and that he didn’t see the incremental profit potential of an ad-supported tier.

However, Hastings acknowledged that the online ad market has now “advanced” to not have to include all the information and data about people that you used to.“Once you start offering a lower price plan with ads as an option, some consumers take it, and we’ve got a big installed base that probably are quite happy with where they are.

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