Yesterday we saw that Netflix had already confirmed that it would start charging for account sharing in some countries, and today we have more information about the expected low-cost subscription with advertising, one of the company’s most important innovations for stop the “bleeding” of users which suffered and attracted a wider audience.

Regarding the loss of users, concrete data needs to be seen to better understand the reality that Netflix is ​​going through. The company is experiencing a significant decline in users, made worse by the end of the service in Russia, where it lost around 700,000 subscribers, to which we should add the potential growth it gave up when it left. market. It confirmed a loss in the second quarter of 2022 970,000 subscribers.

There’s no question the data isn’t good, but Netflix is ​​clinging to the comfort of thinking the numbers aren’t as bad as they expected. In general, I think that this new economic plan with advertising is mainly aimed at young people with limited resourcesand also to users who like Netflix rather occasionally and that it is therefore more profitable for them to spend less money and accept advertising.

The fact is that the said plan seems to be going through a complicated situation because Netflix would be forced renegotiate agreements that it has signed contracts with major studios and publishers to include certain content in an ad-supported economic plan. According to Netflix’s Co-CEO and Chief Content Officer, Ted Sarandos, if the plan were to launch today some content will not be availableand the agreements are to blame.

According to Sarandos, they may include what most people are watching on Netflix right now, but it’s clear that launching a cheap, ad-supported plan that lacks important content would be a serious mistake, as it would create a “decaffeinated” subscription that couldn’t ultimately attract big amount of public.

It’s important to note that this won’t affect Netflix exclusive content, of course it would be available, but it might miss out third-party series that are very popular, such as Breaking Bad or The Walking Dead. We’ll see how things play out, but I think Netflix will ultimately wait to renegotiate those deals to include all the content before launching an ad economy plan.