Published , by TJ Denzer
Published , by TJ Denzer
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.