Netflix announced a new strategy regarding its subscription plan and it was recently known when it could be available. Know all the details!
The last few months have not been easy for the streaming service Netflix, since through a statement they confirmed a hard drop of 200 thousand subscribers and the forecasts assure that it can be millions in the long term. As a result of this situation, the company confirmed a new cheaper plan that will have advertisements. See when it would be available!
The company led by Ted Sarandos reported a notable decline in its users and since then they have also suffered huge losses in their shares, wiping out roughly $70 billion in market capitalization. Officially no reasons have been issued for the drop in audience, but it is mainly due to high prices and competition that has increased in recent times.
Netflix CFO, Spencer Neumanhad stated: “It’s not in our plans. We have a great subscription business model on a global scale”. However, the current situation has prompted them to take urgent action and they finally confirmed that they will implement a less expensive subscription option, although it will have advertisements. Recently, more details about its launch were known.
+When will the Netflix option with ads be available?
Through a company note to streaming employees, the executives stated that the goal is for the new subscription plan with lower price and advertising to be available by the end of the year, specifically in the last three months of 2022. Also, it was made clear once again that they will be cracking down on password sharing among their user base.
In old statements from those responsible for Netflix, they had assured that this plan would be announced “in a year or two”, but the current moment of the company has led them to take a hasty move to keep their subscribers. The executives stated that this measure will be a solution, imitating what has been done by HBO Max and Hulu TV, platforms that offer a subscription similar to the one that they will soon implement.