Netflix to Launch Lower-Priced Ad-Based Subscription Tier in Early 2023
thewrap.comanalysts feared due to the partnership specifically with Microsoft over other partners such as Google, Comcast or Roku with more established infrastructures could delay the rollout of the pricing tier.
Netflix said in the letter to shareholders that it would likely roll out the pricing tier in a handful of markets, as they’ve done with other new initiatives and features – and that it will specifically target markets where advertising spend is significant. “Our intention is to roll it out, listen and learn, and iterate quickly to improve the offering.
So,our advertising business in a few years will likely look quite different than what it looks like on day one,” the company wrote. “Over time, our hope is to create a better-than-linear-TV advertisement model that’s more seamless and relevant for consumers, and more effective for our advertising partners.” Netflix in its Q2 earnings saw its subscribers drop by 970,000, but the total subscribers lost was 1 million less than what it had projected to lose the prior quarter, leading to Netflix’s stock price to rise approximately 7%. .
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