Netflix could soon announce cheaper subscription plans with ads to lure in more users. The American OTT has lost record 200,000 subscribers in Q1, and the company may be forced to announce a cheaper package to keep its users hooked.
2022 has not been much favorable for Netflix. The prominent streamer has lost a huge number of subscribers in the first quarter. Worse, it also predicts to lose 2 million more in April – June, a record that it won’t be proud to keep.
This is due to the ongoing Russian invasion of Ukraine and the inflation. Netflix lost 700,000 subscribers after suspending the service in Russia. But it is also due to the spiraling competition in the digital platforms. For an instance, HBO added 3 million new subscribers at the same time Netflix lost its own.
And as a direct result, Netflix has already begun stringent measures.
The global crackdown is coming on users who are sharing their Netflix passwords with those beyond their families. The company has also canceled some shows as it tries to make even with the balance with the base going downhill.
But to regain its subscribers as well as gain more, the company may soon bring affordable subscription plans. The only caveat, those will come with ads. Anyway, the ads may not deter loyal fans of Netflix who broke up with the service only due to the subscription costs.
“Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription,” Netflix CEO Reed Hastings told Reuters. “But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
And he announced that Netflix is at work to bring affordable, ad-supported subscriptions. He also mentioned that the budget-friendly policy could take a year or two to arrive.
Netflix’s password sharing is supported by the company itself and remains a core part of its base. However, this very nature of the service has also hurt the company’s revenues. To replenish its missing fortune, it is exploring ways to generate extra income from those who share their Netflix account password with those beyond their family.
Additionally, the company has also invested in the gaming section to generate additional revenues. This comes at no cost as Netflix wants to avoid any risk of losing subscribers and also gain some financial grounds.
Are you a subscriber of Netflix? Would you be eager to subscribe to cheaper Netflix plans with ads? Or would you rather continue with a paid one without ads, and why? Do share with others in the comments below.