New Delhi: Online streaming platform Nextflix may soon launch more affordable streaming plans to revive its subscriber growth. According to media reports, such low-cost packages, if launched, will be supported with ads, which could be a big change for the company, which has always stayed away from the ad-supported model.
The move comes on the heels of Netflix losing nearly 200,000 paying subscribers in the first quarter of 2022, the first such decline for the company in a decade. The company is expecting a further decline in subscriber base in the current quarter.
In a call Tuesday (April 19) with Netflix investors, co-CEO Reed Hastings highlighted the potential of advertising. According to the company’s official report, it may lose more than 20 lakh subscriptions in the next quarter.
Sharing strategy for the next year or two, Hastings said, “But think of us as offering even lower prices with advertising as consumers’ choice.”
Hastings said, “People who have followed Netflix know I’ve been a big fan of the complexity of advertising and the simplicity of subscriptions. But as much as I’m a fan of it, I’m a big fan of consumer choice.” . And allowing consumers who want low prices and are ad-tolerant to get what they want makes a lot of sense.”
Hastings also said, “I don’t think we have any doubt that [the ad model] Works. I’m sure we’ll just come in and find out – as opposed to testing it and maybe do it or not.” Also read: Redmi 10a affordable smartphone with 5,000 mAh battery launched in India: Price, specs
As of now, Netflix hasn’t come up with a complete plan for its ad-supported model. Therefore, the pricing of such subscriptions is not out yet. Having said that, we may have to wait a few quarters to get the full picture of how Netflix pans out the negative growth of its user base. Read also: WikiLeaks founder Julian Assange to be extradited to US, UK court orders
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