PALO ALTO, California –
In what they are calling a “simple change,” Netflix announced that they play to move away from the “expensive” ad-free model they currently have, and move towards an ad-based model that would reduce monthly costs for consumers, much like competitors Hulu and Crackle.
“One of the biggest complaints we get is our high cost,” said Netflix CEO Reed Hastings. ” The second biggest complaint is that there aren’t enough commercials. I know, I know. You don’t believe that second one, but it’s true.”
Hastings said that the company has spent the last 5 months partnering with companies who plan to run 10-30 second commercials before and after shows, as well as at periodic points in any show or movie longer than one hour.
“For our customers who do not want commercials, and prefer to keep their streaming service as it is, we will have that option, but unfortunately, the price will go up for that,” said Hastings. He did not confirm the upgraded cost.
“On the plus side, the cost for ad-based streaming will go down to $3.99 a month for HD, and 4.99 for 4K. We really believe in this model, and think that our customers will, too,” said Hastings.
DVD Netflix, which many of you are learning still exists just by reading this sentence, will still send commercial-free, retail versions of DVDs and Blu-rays.