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Netflix’s new lower priced ad supported plan.
In a move that can only be described as post-covid trauma response. Netflix has gone full circle. Initially, the streaming service started out as a disc rental service that allowed users to pick from a selection of movies and TV shows that would be mailed to them. Then, it became an ad-free streaming service that quickly became one of the most popular ways to watch shows and movies, replacing traditional TV. Now, the company is introducing an ad-supported lower priced plan in an effort to attract more users.
The new plan will cost £4.99 a month in the UK and $6.99 in the US, which is $2 less than the current basic plan. The new plan will include ads during shows and movies, as well as on the main screen when users are browsing. The company has said that the ads will be “personalized and relevant.” The new plan is currently only available in the United States and Canada, but the company plans to roll it out to other countries later this year.
Why are investors scared of this move?
The biggest reason is that it could potentially cannibalize the company’s current subscriber base. Netflix has been very successful in getting users to pony up for its ad-free service. Introducing an ad-supported option could cause some users to switch to the lower priced plan, which would then impact the company’s bottom line. In addition, it’s not clear how successful the ads will be in attracting new users. Many of the ad options are pretty generic and may not draw in many new viewers.
Netflix is confident that the move will pay off though. The company has been testing the ad-supported plan in some markets and is convinced that it will be successful. In addition, the company is betting that the ads will be more palatable to users than they are on other streaming services like Hulu. Netflix has always prided itself on having a better user experience than its competitors and it is betting that users will appreciate the fact that they won’t have to sit through as many ads.
The stock market reacts negatively to the news, with Netflix shares falling more than 5% on the news. The reason for the sell-off is that investors are worried about the potential impact on the company’s bottom line. In addition, there are concerns that the ads could alienate some of the company’s current subscribers. However, it’s worth noting that the stock has already rebounded somewhat after the initial sell-off.
The market's reaction to Netflix's new ad-supported plan may be an overreaction. While it's true that the move could cannibalize the company's current subscriber base, it's also possible that the ads will be more palatable to users than they are on other streaming services. Netflix has always prided itself on having a better user experience than its competitors, and it's possible that users will appreciate the fact that they won't have to sit through as many ads. In addition, the company is betting that the ads will be more successful in attracting new users than the generic ad options on other streaming services.
Netflix’s move comes as other streaming platforms are introducing their own ad-supported plans. Hulu has had an ad-supported plan for years, but it has been overshadowed by its more popular subscription plan. However, the company has been ramping up its efforts to promote the ad-supported plan in recent months. In addition, a number of new streaming services have launched with ad-supported plans, including Quibi, Peacock and HBO Max.
It's still too early to say whether Netflix's move will pay off. The company is betting that the ads will be more palatable to users than they are on other streaming services, and that the ads will be more successful in attracting new users. However, it's possible that the ads will alienate some of the company's current subscribers. Only time will tell whether Netflix's gamble will pay off.
It is also worth mentioning many movies and shows will not be included in the package. These include
Movies
· 28 Days
· 30 Minutes or Less
· The Age of Adaline
· Alpha and Omega
· The Alpinist
· American Murder: The Family Next Door
· American Pie Presents: Girls’ Rules
· American Ultra
· August: Osage County
· Backtrace
· The Bad Guys
· Bad Words
· A Baker and the Beauty
· Battle: Los Angeles
· Ben is Back
· Big Eyes
· Birth of the Dragon
· Blackhat
· Blade of the 47 Ronin
· Blair Witch
· Blue Jasmine
· Blood and Bone
· The Book of Henry
· The Bounty Hunter
· Casino Royale (2006)
· El Chema
· Children of the Sea
· Cleaner
· Contraband
· Crimson Peak
· Daddy Day Camp
· The Danish Girl
· Darkest Hour
· Delta Farce
· Dope
· Doom Annihilation
· Dracula Untold
· Dragonheart: Vengeance
· The Duff
· Effie Gray
· Empire State
· Endless Love
· Escape from Planet Earth
· Falsa Identidad
· Father Christmas is Back
· Father Stu
· Final Score
· Fireworks
· Five Feet Apart
· The Forest
· Funan
· Geronimo: An American Legend
· Get On Up
· The Giver
· Good Girls
· A Good Old Fashioned Orgy
· Good on Paper
· Grand Daddy Day Care
· The Green Inferno
· Hail, Caesar!
· The Hateful Eight
· The Hateful Eight: Extended Version
· Hell or High Water
· Hop
· How High 2
· The Hurt Locker
· Honey Girls
· If Beale Street Could Talk
· The Imitation Game
· Imposters
· Incarnate
· The Interpreter
· The Interview
· It Follows
· Jarhead: Law of Return
· Jem and the Holograms
· Jexi
· John Carpenter’s Vampires
· Justice
· King of Thieves
· A Knight’s Tale
· Labyrinth
· Land of the Lost
· Lee Daniels’ The Butler
· Legend (2015)
· Les Misérables (2012)
· Linewatch
· The Little Rascals
· The Little Vampire
· LOL
· Loving
· Lowrider
· Made of Honor
· Man on a Ledge
· Margin Call
· The Mask of Zorro
· Missing Link
· The Mist
· MFKZ
· A Monster Calls
· Morbius
· Mr. Right
· The Munsters
· Nocturnal Animals
· Notting Hill
· Oblivion
· Okko’s Inn
· Ouija: Origin of Evil
· Paddington
· The Phantom Thread
· Pineapple Express
· Piranha (2010)
· The Poison Rose
· Pope Francis: A Man of his Word
· Puerto Ricans in Paris
· Puss in Book: Trapped in an Epic Tale
· Quantum of Solace
· Rambo (2008)
· Rambo: Last Blood
· Ratchet & Clank
· Raw
· Resident Evil
· Resident Evil: Retribution
· Resident Evil: Apocalypse
· Riot
· Road House
· Robin Hood (2010)
· RV
· Rush
· St. Vincent
· Savages
· Scary Movie V
· Scary Stories to Tell in the Dark
· Seven Pounds
· Seventh Son
· The Shack
· She’s Funny That Way
· Shooter
· Siberia
· Sing 2
· Skyfall
· Snatch
· Sorry to Bother You
· Soul Plane
· Speed Kills
· The Spy Next Door
· State of Play
· Steve Jobs
· Still Alice
· The Stolen
· S.W.A.T. Under Siege
· The Take
· Take the Ball Pass the Ball
· Term Life
· That’s My Boy
· Trading Paint
· Tremors: Shrieker Island
· Undercover Brother 2
· Umma
· Uncharted
· Undefeated
· Unfriended
· In a Valley of Violence
· Vampires vs. The Bronx
· Vice
· Victoria & Abdul
· A Walk Among the Tombstones
· Walking Tall
· Walk of Shame
· Wanted
· We Die Young
· Welcome to Sudden Death
· We Steal Secrets: The Story of Wikileaks
· Who We Are: A Chronicle of Racism in America
· Wild Card
· Wish Upon a Unicorn
· Woman in Gold
· Won’t You Be My Neighbor?
· XV Beyond the Tryline
· The Yeti Adventures
· You Cannot Hide
· The Young Messiah
· Zathura
· The Zookeeper’s Wife
TV shows
· 3Below: Tales of Arcadia
· The Adventures of Puss in Boots
· All Hail King Julien
· All Hail King Julien: Exiled
· All Hail King Julien: Happy Birthday to You!
· American Murder: The Family Next Door
· Archibald’s Next Big Thing
· Arrested Development
· Ash vs. Evil Dead
· The Boss Baby: Back in Business
· The Boss Baby: Back in the Crib
· The Boss Baby: Get That Baby!
· Captain Underpants: Epic Choice-O-Rama
· Dawn of the Croods
· Diary of a Gigolo
· Dinotrux Happy Birthday to You
· Dinotrux Supercharged
· Dirty John
· Dragons: Race to the Edge
· Dragons: Rescue Riders
· Dragons Rescue Riders: Hunt for the Golden Dragon
· Dragons: Rescue Riders Huttsgalor Holiday
· Dragons Rescue Riders: Secrets of the Songwing
· The Epic Tales of Captain Underpants
· The Epic Tales of Captain Underpants in Space!
· El Final Del Paraiso
· Fast & Furious: Spy Racers – Homecoming
· Friday Night Lights
· Gabby’s Dollhouse
· Go Dog Go
· The Good Place
· Greenleaf
· High: Confessions of an Ibiza Drug Mule
· House of Cards
· The Inmate
· Jenni Rivera: Mariposa De Barrio: La Serie
· Jurassic World: Camp Cretaceous
· Kipo and the Age of Wonderbeasts
· Knight Rider
· Knight Rider 2000
· Kung Fu Panda: The Dragon Knight
· The Last Kingdom
· The Magicians
· Malverde: El Santo Patrón
· Marlon
· Minions & More 1
· Monster High: Electrified
· New Girl
· No Te Puedes Esconder
· Peaky Blinders
· Playing with Fire
· Queen of the South
· She-Ra and the Princess of Power
· The Sinner
· Spirit: Riding Free
· Spirit: Riding Free – Pony Tales
· Spirit: Riding Free – Ride Along Adventure
· Spirit: Riding Free – Riding Academy
· The Spooky Tale of Captain Underpants Hack-A-Ween
· Stargate: SG-1
· Team Zenko Go
· Time: The Kalief Browder Story
· Trollhunters: Happy Birthday to You
· Trollhunters: Tales of Arcadia
· Trolls: The Beat Goes On
· Uncoupled
· Unsolved: Tupac & Biggie
· Vampire Academy
· Van Helsing
· VeggieTales in the City
· Voltron: Legendary Defender
· Wizards: Tales of Arcadia
· Wynonna Earp
