As per Netflix’s statement, it is going to introduce a new plan based on advertisements:
Ad-free BasicStandardPremium plans
Netflix confirmed the news of its partnership with Microsoft through a blog post. Chief Operating Officer and Chief Product Officer, Greg Peters, said that Microsoft has continued to prove its ability to support Netflix for all its advertising needs. Additionally, Microsoft has provided the flexibility to innovate over time on both the sales and technology sides.
Why this ad-supported plan?
The announcement of bringing out an ad-supported plan came after the company saw a sudden downfall in the number of subscribers in the last quarter. And with this new plan, Netflix is ready to bring a cheaper subscription plan. The cheaper plan will attract more new customers. So, this plan will work as a business strategy.
How will this ad-supported plan help Netflix in earning money?
Netflix has a lot of data to easily sell advertisements. This is because it has a near about 222 million user-base across the world. Alongside, partnering with Microsoft will help Netflix to develop tools and sales. And this cheaper plan will bring more new subscribers from various regions and countries. As of now, Netflix’s most affordable plan is priced around Rs 149 per month. This one is a mobile plan that only runs in 480p video quality. The subscribers of this plan can only view series and movies on their smartphones and tablets. Also, the plan only has one screen usage. Some reports also suggest that Netflix was negotiating with entertainment firms to put a few ads into shows that were not created by them.
