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Could this brand new Netflix feature help reduce your monthly costs?

A mother, father and two daughters are sitting on their living room couch sharing popcorn while watching a movie.

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There are changes in the works – for the better and for the worse.


Important points

  • Netflix has lost many subscribers over the past few months.
  • It is now trying to introduce a cheaper subscription that includes ads.

While it might seem like every other person you know has a Netflix subscription, the reality is that the company has had a rough year. Netflix’s stock price plummeted after recent gains failed to live up to expectations. Not only that, but the streaming service giant reported a loss of 200,000 subscribers last quarter, which has unsurprisingly led to significant layoffs within the company.

As a result, Netflix is ​​looking for a way to increase sales and entice consumers to try its service. So a lower-priced option is being sought that could appeal to consumers at a time when inflation is soaring and people are being forced to cut discretionary spending.

But will this cheaper option be a good one for you? This depends on your tolerance for ad-supported content.

A change is in the works

Earlier this year, Netflix raised its prices across its various tiers of content. A basic non-HD Netflix subscription costs $9.99 per month and allows you to stream on one device at a time.

Meanwhile, the standard plan costs $15.49 per month, and that gives you the ability to stream on two devices at the same time. Netflix’s most expensive tier costs $19.99 per month, but includes the highest picture quality and the option to stream content across four devices.

However, none of these tiers expose viewers to ads. But that should change.

Netflix is ​​now trying to introduce a lower-priced tier that includes ads to grow its subscriber base. And this is certainly not a new concept. Other competing streaming services, such as Hulu, have lower-cost plans for customers willing to sift through ads. So if it works for them, it could very well work for Netflix.

Should you sign up for Netflix with ad-supported content?

Netflix’s new tier could end up saving you some money. But whether it’s worth having to watch ads all the time is something to think about.

If you don’t mind ads, you might as well try Netflix’s new offering and save some money in the process. If money is tight, Netflix’s new tier could be a good solution for you – one that gives you access to content without having to add too much to your monthly credit card balance.

But if you’re someone who doesn’t pay for cable and Netflix is ​​your only streaming service, then you might want to stick with ad-free content — even if it means paying a little more. This is especially true if you have no trouble paying your bills and can easily switch your Netflix subscription.

Offering ad-supported content is a strategic move for Netflix at a time when serious subscription and revenue growth is needed. However, it is not yet certain whether it will work. But as a consumer, it’s good to have options for relatively cheap access to entertainment, and if you’re willing to sift through ads, you can save yourself a decent amount of money.

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