iWorld
Netflix’s US ad tier launch delivers highest sign-up rate since April 2020
Mumbai: OTT platform Netflix recorded its highest daily subscription sign-up rate in the US since the start of the pandemic in April 2020 with the launch of its ad-supported plan on 3 November, according to a new report by Ampere Analysis.
Specifically, the release of the ad tier led to a 58 per cent increase in the streamer’s average daily sign-up volumes from 3rd to 5th November, compared to the three days before the launch.
Since the new plan became available to subscribers, eight per cent of those who signed up for Netflix or switched plans have chosen the ad-tier. Of these, three out of four are new signups, mostly re-subscribers (64 per cent) but also first-time users of the platform (36 per cent).
According to the study, over 75 per cent of new ‘Basic with ads’ subscribers are stacking at least three subscription video on demand (SVoD) services, with Amazon Prime Video, Disney+ and Hulu being the most common other choice.
Tier switching: One in four of the ad tier subscribers are existing Netflix users that have switched tiers. As expected, a large proportion (67 per cent) of these come from the basic tier – the most price-sensitive group of Netflix subscribers. One fifth of switchers (21 per cent) moved from the standard tier, and just 12 per cent come from the premium tier.
Ampere Analysis analyst Mayssa Jamil said, “Netflix’s ‘Basic with Ads’ tier, which is $3/month cheaper than the basic tier, has succeeded at drawing back more price-sensitive Netflix subscribers who had previously churned. In addition to this, with the strengthening of competitor services, the low $6.99 price point makes it more affordable to subscribe to multiple services at once and has therefore also appealed to heavy stackers. Finally, some basic tier users (who are more prone to churning as economic uncertainty and competition increase) have been downgrading to the ad-tier, which will aid customer retention in the long-term.”
iWorld
Meta plans 8,000 layoffs in new AI-led restructuring wave
First phase from May 20 may cut 10 per cent workforce amid AI pivot.
MUMBAI: At Meta, the future may be artificial but the cuts are very real. The social media giant is reportedly preparing a fresh round of layoffs, with an initial wave expected to impact around 8,000 employees as it doubles down on its artificial intelligence ambitions. According to a Reuters report, the first phase of job cuts is slated to begin on May 20, targeting roughly 10 per cent of Meta’s global workforce. With nearly 79,000 employees on its rolls as of December 31, the move marks one of the company’s most significant workforce reductions in recent years.
And this may only be the beginning. Sources indicate that additional layoffs are being planned for the second half of the year, although the scale and timing remain fluid, likely to be shaped by how Meta’s AI capabilities evolve in the coming months. Earlier reports had suggested that total cuts in 2026 could reach 20 per cent or more of its workforce.
The restructuring comes as chief executive Mark Zuckerberg continues to steer the company towards an AI-first operating model, committing hundreds of billions of dollars to the transition. Internally, this shift is already visible: teams within Reality Labs have been reorganised, engineers have been moved into a newly formed Applied AI unit, and a Meta Small Business division has been created to align with broader structural changes.
The trend is hardly isolated. Across the tech sector, companies are trimming headcount while investing aggressively in automation. Amazon, for instance, has reportedly cut around 30,000 corporate roles nearly 10 per cent of its white-collar workforce citing efficiency gains driven by AI. Data from Layoffs.fyi shows over 73,000 tech employees have already lost jobs this year, compared with 153,000 in all of 2024.
For Meta, the move echoes its earlier “year of efficiency” in 2022–23, when about 21,000 roles were eliminated amid slowing growth and market pressures. This time, however, the backdrop is different. The company is financially stronger, generating over $200 billion in revenue and $60 billion in profit last year, with shares up 3.68 per cent year-to-date though still below last summer’s peak.
That contrast underlines the shift underway. These layoffs are less about survival and more about reinvention. As Meta restructures itself around AI from autonomous coding agents to advanced machine learning systems, the question is no longer whether the company will change, but how many roles will be left unchanged when it does.
