It was clear that Netflix It will not sit idly by after it announced the loss of 200,000 users in the first quarter of 2022.

As part of a strategy to combat an annoying situation, The Streaming video platform Proved he would start subscribing cheaper. That if, to compensate for the price drop with ads.

He was the CEO of Netflix, Reed Hastings, Who announced such an important step during his usual call to investors (information thanks to The Hollywood Reporter).

However, users should not expect to see a cheap subscription soon because The company will spend at least a year researching the offer before distributing it to everyone. The director does not rule it out The course lasts for two years.

Loss of 200,000 users, reason to change your mind

Back in March, Spencer Neumann, chief financial officer of Netflix, said they were not interested in an ad-supported subscription. “It is not in our plans at the moment. We have an excellent subscriber business model globally. ” Said.

What made him change his mind in such a short time? There is no doubt that disappointing figures were recorded in the first fiscal quarter of 2022.

Speaking to investors, Hastings himself acknowledged that consumers want a cheaper alternative. You have to remember this The platform is steadily increasing its prices in most parts of the world, A situation that starts to irritate a significant number of members. However, now Netflix wants to change everything:

“Those who follow Netflix know that I was against the complexity of advertising and I am a big fan of the ease of subscribing. But as much as I’m a fan of this, I’m more into consumer choice. And allows users who want to have a low price and tolerate advertising to get what they want, it makes a lot of sense, “- said in an official statement of the platform.

Netflix, we will closely monitor its competition so as not to lag behind

Another factor that prompted Netflix to explore the plan with advertising is the excellent acceptance that this type of subscription had by its competitors. hbo max Already offers a Free subscription with adsbut Disney Plus Also plans a Cheap membership. The latter is expected to be available in most parts of the world by 2023.

“It’s pretty clear it works for Hulu, Disney does it, HBO did it. We have no doubt that it works. ” Hastings added.

In the event of a privacy concern, any ad-supported subscriptions; Netflix understands that it has no plans to use the tracking system to collect data:

“In terms of profit potential, the internet advertising market has really advanced and now you do not need to include all the information about people that you used to combine. We can let go of this and actually focus on our members to create this great experience. ”

The loss of 200,000 users is not the only thing that worries Netflix. The company expects to lose 2 million subscribers in the fiscal quarter Due to a significant slowdown in its growth. Offering a cheap subscription is part of the strategy to stop the decline.

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