Netflix, after years of insisting it would stick solely to subscription-only plans, is finally open to experimenting with lower-cost ad-supported packages, co-CEO Reed Hastings said on the company’s Q1 earnings interview.
The company expects to figure out its strategy in ad-supported streaming over the next year or two, Hastings said, “but think of us as quite open to us offering even lower prices with advertising as a consumer choice.”
“Those that have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said. “But as much as I’m a fan of that, I’m a bigger fan of consumer choice. And allowing consumers who would like to have a lower price and are advertising-tolerant, get what they want, makes a lot of sense.”
Hastings didn’t provide detail on what Netflix’s ad-supported plans might cost. The standard two-stream HD plan costs $15.49 per month in the U.S.
More to come.
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