Netflix Will Add Ad-Supported Plans as It Loses Subscribers
Apr. 20, 2022Netflix’s Plan to Manage Its Declining Userbase
In its latest Q1 earnings report,Netflix has revealed that over 100 million users are sharing their Netflix accountsand this password-sharing problem is one of the causes of the decline in its userbase. To solve this, Netflix will now bring its recent test into full force soon.
In the report, Netflix says, “There’s a broad range of engagement when it comes to sharing households from high to occasional viewing. So while we won’t be able to monetize all of it right now, we believe it’s a large short- to mid-term opportunity.“
Another way Netflix aims to solve the problem of decreasing subscribers is byintroducing cheaper, ad-supported plans soon. While the OTT platform was never up for bringing ads to its streaming platform, it seems like it is now drawn toward the idea for the sake of more subscribers and revenue.
That said, there’s no word on when these ad-supported plans will be introduced and how much will they cost people.
Netflix has other reasons for the declining userbase. It blames the “uptake of connected TVs,” competition like Disney+ and Amazon, data costs, the Russian-Ukraine war, rising inflation, and well, partly COVID-19 as well. And one thing it fails to realize is itsrising priceswhile the competition is tough!
Started off as a stranger but tech is more like a good friend, thanks to over 5 years in the industry. While everything is attractive about tech, phones, social media, and quirky gadgets attract me the most. When not working, I find my solace in shopping and everything that concerns doggos!
