Netflix Planning to Introduce Ad-supported Plans

Netflix is planning to offer consumers a cheaper ad-support tier in the next 1-2 years, the world's largest on-demand video streaming service looking to expand its subscriber base amid intensifying competition from rival firms.

Reed Hastings, co-Chief Executive Officer of the company, reported in a conference call that the streaming platform lost 200,000 paid subscribers in the first quarter and will introduce the ad-supported plans to give customers more choice. 

He also said that the ad model has matured enough and has proven successful for its rivals including Hulu and Disney and that the company does not have any more doubts that it works.

Disney has long provided an ad-supported tier with several services, including Hotstar, its streamer focused on Asia. The company announced last month that it plans to launch an advertised Disney+ plan in the United States later this year.

In December, Netflix introduced India's lowest monthly pricing tier, allowing individuals to subscribe to Netflix for just Rs 199 ($2.6). Last year, the company offered a free mobile plan in Kenya. The company said it is seeing "nice growth" in various markets, including India.