Netflix co-CEO has a clear target audience in mind with its ad level

One of the main pillars of this supposedly more lucrative era of Netflix is ​​the new ad-supported “Basic with Ads” tier, which allows users to pay less money for an advertised experience (via CNN). According to co-CEO Ted Sarandos, the proof that this idea holds up is his own family. “A lot of people, including my son, are willing to watch ads and charge a lower price,” Sarandos said (via Term). He went on to say that the rollout of the ad-supported tier will be a long and evolving process, possibly leading to several different ad-supported tiers in the future.


Further monetization of the service in this way is just one new initiative the company is testing. Netflix has also begun cracking down on password exchanges in Chile, Costa Rica, and Peru, requiring users currently exchanging passwords to pay extra for additional third-party profiles, offering users without accounts of their own the option to transfer their data to a new account. .

While Netflix executives seem confident the move will lead to new subscribers, a survey conducted by CNBC showed that only 20% of users using the same account would consider registering their own. However, Sarandon asks followers to go ahead, telling Deadline, “Consumers won’t like this from the start, but we need to show them why they need to see the value.”


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