Some big news there; I'm not feeling great about it. In Australia we have a service we pay for, Foxtel Now - costs $35 a month (I know, a lot more than the 11 bucks Netflix wants) - and they start every episode with an AD. Every time I start a show I think, 'Why am I paying for ads?'.
That said, if it helps Netflix grow and produce more content, I could also see the advantages in it. I could handle it if the ads were at the start of the show, if they were throughout, there's no way there would be value in that subscription.
Many streaming platforms like Hulu, Paramount+ offer cheaper subscription plans with ads. I guess as long as there is an option without ads, it could work. They probably did their studies and maybe see their competition doing better with multiple options.
The whole model is breaking down. None of these platforms make money on there streaming services. Still burning cash and now with interest rates and cheap money getting tight it’s gonna show. Obviously the Amazon’s and Disney’s have profits from other parts of biz but streaming alone services none make money currently. Netflix especially. Stock down like 70%, it’s a shit show