Your Netflix subscription may be cheaper over time … provided you accept ads on it. The CEO of the streaming platform, Reed Hastings, revealed that he is working on this type of formula for his service, details of which will be revealed “within a year or two”.
Reed Hastings made the announcement at Netflix’s quarterly earnings presentation on Tuesday, which raised the lid on the first drop in subscribers in the platform’s history. In fact, the company counted approximately 200,000 fewer members in its latest report, which it attributed, among other things, to the disconnection of its service to Russia, in solidarity with the Ukrainian citizens.
It should also be noted that Netflix fans, as well as other streaming platforms, have experienced some price increases in recent years, in an increasingly saturated market. This increase could also encourage many to share their account password, Netflix estimates that more than 100 million people do so (out of 222 million subscriptions).
The platform has also been trying since March in some South American countries to add sub-members to its account, for a fee, to fight the plague of password sharing.
According to Reed Hastings, offering platform followers a service with cheaper advertising could be part of the solution to attract new customers.
It’s pretty clear that it works for Hulu, Disney does, HBO has. We have no doubt it workshe mentioned.
The CEO clarified that Netflix will continue to offer ad-free subscriptions.
Source: Radio-Canada