Netflix (NFLX) to offer cheaper, ad-supported plans
The plan supposedly comes in reaction to Netflix having lost around 200,000 subscribers in the last quarter.
Netflix may be trying to alleviate major recent losses with new subscription plans in the near future. There’s word that the company is preparing to offer a new, cheaper Netflix subscription which will feature ads to offset the cost. This may very well be in response to the company supposedly losing around 200,000 subscribers in the most recent quarter alone, for which the company is trying to win users back.
This information comes to us from Netflix’s recent quarterly earnings interview for its Q1 2022, which was posted on April 19, 2022. According to CEO Reed Hastings, the company has plans to roll out new and cheaper Netflix subscriptions in the next quarter that will serve ads to offset the lower cost.
“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said. “But as much as I am a fan of that, I am a bigger fan of consumer choice. And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.”
Netflix is likely rolling out these new ad-supported subscription packages in response to a major loss in subscribers over the last quarter. Not only did 200,000 users drop off from the program, but it was one of the first times in 10 years that Netflix reported a decline in user subscriptions. The company has been actively moving in new directions with the roll out of its new Netflix Games department, which is prepping to launch a collaboration with Exploding Kittens, featuring a new animated series and tie-in game.
That is to say, Netflix has been spending more money than usual on various efforts. Losing subscriptions is likely an alarming situation alongside that, and so we’ll see what happens when Netflix rolls out its ad-supported subscription options and what they’ll entail soon. Stay tuned for more details here at Shacknews.
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replyTJ Denzer posted a new article, Netflix (NFLX) to offer cheaper, ad-supported plans
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Netflix is in a tough spot. They pretty much don't get dibs on streaming movies that leave theaters. It was a boon when they managed to grab Stars for a little while. They had some tv series, and still have some, but even that's drying up with stuff like some of the Star Trek series moving to P+. Basically this is the problem, and they do say as much. Competition in the form of studio owns distribution is pulling a lot of content inside their respective services. The only thing Netflix can do is go deeper into original content. But, that's hella expensive and a gamble vs licensing something that has predicable numbers.
Recently they've gotten some mix of older movies. But, those same titles also showed up on other services like Hulu at the same time, so that's not much of a win for Netflix. Honestly, what I'm watching now I could watch on P+ if I switched subs. Some bit of anime they managed to get the exclusive license for, so there's there. But, that will binge fast.
I don't envy their situation.-
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"Netflix has said it intends to spend $17 billion to produce content in 2021. While reports in 2017 said Apple was spending just $1 billion on its initial slate of original content, by 2019 the tech giant had reportedly increased its original content budget to $6 billion to compete with the bigger streaming giants. That may still not be enough, though."
https://finance.yahoo.com/news/apple-chump-change-original-content-big-win-for-netflix-stock-analyst-174029016.html -
They suffer their own fate.. You are never going to survive as a middle man and peddling the content no studio would ever release isn't a solid business plan. It was fun while it lasted...
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i've said it a bunch, but my wife worked at a cable hardware co around the turn of the 2010s - and at that point everybody was using hardware that was able to do on-demand multi-device streaming like netflix; just nobody else WANTED to do it. they were accustomed to their sweet, sweet cable tv subscription rates, and they weren't going to cannibalize their own cable subs with *too* good of a competing service at netflix's prices at the time (enter hulu).
there was never going to be any 'being the streaming platform middleman' niche - all of the potential customers for a middleman already had the hardware to start doing it on their own when they decided to go for it.
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where we started was regional monopolies that did not have to compete on quality or price, this is nothing like that
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