Netflix is reportedly slashing the prices it is charging advertisers in the latest sign that its new ad-supported service is falling short of expectations.
The development comes shortly after Netflix reported disappointing quarterly revenue figures that sent shares of the woke streamer tumbling last week. Executives said the ad-supported service has thus far failed to generate “material” financial results for the company.
Microsoft had guaranteed Netflix a minimum level of advertising revenue, and is now compelled to pay Netflix the maximum penalty allowed by the contract, theNetflix debuted the new service — which costs $6.99 a month — in November, hoping the introduction of commercials would juice overall corporate revenue. The streamer even eliminated its cheapest traditional plan, which cost $10 a month, in the apparent hopes of shifting more subscribers to the ad-supported plan.
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