Netflix is open to creating another ad-supported tier with a reduced fee after price increase sees 200,000 subscribers cancel their membership with the streaming service.
Many subscribers of the popular streaming site may have been contacted recently by the company alerting them that their price plan will increase with their next billing month.
Co-CEO Reed Hastings said in an Earnings Interview:
“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription.”
“But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”
However, with no mention of what the price would be for the cheaper tier, people are commenting:
‘You bring in adds and you are going to lose even more subscribers.’
‘I can’t even stand YouTube anymore with their incessant ads, and that’s free.’
Shares in the company have gone down 25% with their share price dropping about 40% lower year-to-date.