Netflix is having a rough year. It stopped offering its services in Russia, which meant the loss of subscribers. Next, the company cracked down on password sharing.
Netflix is now trying to recover the revenue lost in previous quarters. The company told employees the new lower-priced ad tier might come by year-end. The loss of earnings is not the only problem faced by the brand. It is coming under pressure from customers having several streaming options. (source)
Reed Hastings is the CEO of Netflix. Hastings said, " Those who have followed Netflix know that I've been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I'm a fan of that, I'm a bigger fan of consumer choice.
Hastings continued, "And allowing consumers who like to have a lower price, and are advertising tolerant, get what they want makes a lot of sense."
Hastings had earlier said they are figuring out a way to bring ads to the platform. The plan was to see how it would work "over the next year or two." But it seems the planning has sped up. (source)
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