What this means for Netflix’s competitors

Netflix has long positioned its service of streaming as a free alternative to cable, and has resisted calls to introduce advertisements. Netflix will launch its service with an approach to advertising that is familiar and it will be changing its services in the future. As Netflix is trying to reverse its drop in subscribers, its new ad-supported service will be launched Nov. 3. It will cost $7 per month within the U.S., a 55% markdown from Netflix’s most sought-after $15.50-per-month plan that offers no advertisements. The cheaper plan will offer the same content as Netflix’s current plans however will also include advertisements.

A Short Summary

The new service is an effective strategy to allow Netflix to try and reverse the decline in subscribers but it remains to be seen whether it can be successful. Poor quality video and ads may not draw customers to come back. There are many streaming providers that have similar content, without the commercials.

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