Could This Brand New Netflix Feature Help to Reduce Your Monthly Cost?

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  • Netflix has lost many subscribers in recent months.
  • It's now looking to introduce a lower-cost subscription that includes ads.

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

Although it might seem like every other person you know has a Netflix subscription, the reality is that the company has had a tough year. Netflix's stock price plummeted after recent earnings failed to meet expectations. Not only that, but the streaming service giant reported a loss of 200,000 subscribers last quarter which has, not shockingly, led to significant layoffs within the company.

As such, Netflix is looking for a way to boost revenue and entice consumers to give its service a try. And so it's looking at a lower-priced option that may appeal to consumers at a time when inflation is soaring and people are cutting back on discretionary spending out of necessity.

But will that lower-cost option be a good one for you? It depends on your tolerance for ad-supported content.

A change is in the works

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

Meanwhile, the standard plan costs $15.49 a month, and that gives you the option to stream on two devices simultaneously. Netflix's most expensive tier costs $19.99 a month, but it includes the highest quality picture and the option to stream content on four devices.

None of these tiers, however, subject viewers to ads. But that's about to change.

Netflix is now looking to roll out a lower-priced tier that includes ads in an effort to grow its customer base. And that's certainly not a novel concept. Other competing streaming services, like Hulu, for example, have lower-cost plans for customers who are willing to sit through ads. So if it works for them, it might very well work for Netflix.

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

Netflix's new tier might end up saving you some money. But whether it's worth the trade-off of having to watch ads all the time is something you'll need to think about.

If you don't mind ads, then you might as well give Netflix's new offering a try and save some money in the process. Similarly, if money is tight, then Netflix's new tier could be a good solution for you -- one that gives you access to content without causing you to add too much to your monthly credit card tab.

But if you're someone who doesn't pay for cable and Netflix is your only streaming service, then you may want to stick with ad-free content -- even if it means paying a bit more. This especially holds true if you're not struggling to pay your bills and can easily swing your Netflix subscription.

Offering ad-supported content is a strategic move for Netflix at a time when it needs a serious boost in subscription numbers and revenue. Whether it works, however, is yet to be determined. But as a consumer, it's good to have options for accessing entertainment on the relative cheap, and if you're willing to sit through ads, you might save yourself a decent amount of money.

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