Netflix said it’s targeting an early 2023 launch for a cheaper advertising tier as it seeks to stem subscriber losses and hopefully turn them back up.
It will roll the plan out in a handful of markets first but didn’t say which ones.“Our lower priced advertising-supported offering will complement our existing plans, which will remain ad-free.
Our global ARM has grown at a 5% compound annual rate from 2013 to 2021, so it makes sense now to give consumers a choice for a lower priced option with advertisements, if they desire it,” the company wrote in its shareholder letter that accompanies quarterly earnings.Netflix last week announced Microsoft as its key technology and sales partner in the launch. “They are investing heavily to expand their multi-billion advertising business into premium television video, and we are thrilled to be working with such a strong global partner.
We’re excited by the opportunity given the combination of our very engaged audience and high quality content, which we think will attract premium CPMs from brand advertisers.”“We’ll likely start in a handful of markets where advertising spend is significant.
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