Discounted Netflix account with advertisements on the way to you
In light of the expected decline in the number of subscribers, Netflix is about to expedite the correction steps such as the launch of a discounted subscription combined with advertisements that will be launched by the end of the year - although it has previously promised not to include advertisements
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technology
11/05/2022
Wednesday, 11 May, 2022, 11:23 Updated: 11:31
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Watching Netflix (Photo: ShutterStock)
Is Netflix about to accelerate its plans to launch a discounted account that includes commercials?
The answer is probably yes, from a message sent to company employees.
According to the announcement, that the software reached the New York Times, such an account along with other measures, will probably be launched in the last quarter of 2022. The other step planned by the company is to make it harder for password participants (who share their Netflix account name and password with other people). In fact, the company is prevented from paying more main subscribers).
Netflix surprised the industry last month when it unveiled an intention to introduce a new type of subscription, including commercials - after years of declaring that it would never put commercials on the platform.
But the company's financial results, which are not alarming, are likely to force them to break promises: In announcing the first quarter results of 2022, Netflix noted that it has lost 200,000 subscribers, for the first time in a decade.
The company is expected to lose up to two million more subscribers in the coming months.
Since that presentation, the company's stock has plunged, erasing $ 70 billion in Netflix value.
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Lost 200,000 subscribers, for the first time in a decade (Photo: Reuters)
Among Netflix's prominent competitors in the United States, such as HBO Max and Hulu, Netflix is the only one that does not offer a discounted track that contains commercials.
HBO Max for example offers a $ 10 subscription per month that includes commercials, compared to $ 15 without commercials, and hulu operate in a similar structure.
In the same announcement to employees, Netflix executives note that HBO and Hulu have managed to "retain strong brands even though they offer a service that contains advertisements."
Netflix also announced last month that it will start charging higher amounts from subscribers who share their account with multiple people:
"For example, if you have a sister, who lives in another city, and you want to share Netflix with her. That's great! We're not trying to suppress this sharing. "But we'll ask you to pay a little more for the ability to share your account with her," said Greg Peters, Netflix's VP of earnings in the earnings reporting call.
Netflix did not respond.
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