> COO Greg Peters, who is leading the ad push, was asked by moderator and J.P. Morgan analyst Doug Anmuth about whether many subscribers to the ad-free tier would trade down to the ad-supported one. Any resulting loss of subscriber revenue could offset gains from advertising. The new Basic with Ads plan will cost $6.99 a month, compared with $15.49 for the most popular ad-free plan.

> “We don’t see a lot of members switching plans,” Peters said. “Oftentimes, when they come in for a specific feature, let’s say 4K resolution, we see that to be a fairly sticky choice.” If those patterns hold true in the new advertising phase, he added, the company anticipates “unit economics being neutral to positive.” The cheapest plan has certain limitations — only one stream at a time, no downloading 720p resolution (compared with 1080p for the most popular plan).