The American entertainment company Netflix is analyzing the possibility of offering its users a subscription model with ads in exchange for paying a lower monthly rental price.
The option could possibly be available from next year according to Reed Hastings, co-founder of the streaming platform, who also stated that the company’s followers are clear that “I have always been against the complexity of the advertising and in favor of the simplicity of a subscription”.
Hastings said he prefers to give users choice and will allow “customers who want a lower choice and tolerate ads to get it. It’s something we’ll address over the next year or two.”
In states, other platforms such as Hulu and HBO Max have subscription options at lower prices, but the transmission of series and movies is interrupted by short commercial breaks.
The company has been registering a significant loss of clients that affects the platform’s income and is currently analyzing different options that allow it to increase its finances.
Other factors such as inflation, political uncertainty as a result of the war between Russia and Ukraine, as well as the stoppage of filming as a result of the pandemic are factors that Netflix uses to justify its new policies.
New competitors and the war impacted Netflix
The co-founder of the streaming platform is analyzing modifying its principles and policies after the company lost 200,000 clients during the first quarter of this year, during which time it obtained 1,597 million dollars in profit, a figure much lower than the 1,706 achieved in 2021.
Netflix indicated that the decrease in its users is related to new competitors in the market such as Disney and Apple, and the suspension of its services in Russia as a result of its invasion of Ukraine, which caused the company to lose 700,000 subscribers. That country.
The company explained that if it continued in the Russian market, it would have gained 500,000 new subscribers, although a figure quite far from the 2.5 million new users projected for early 2022.
After the company announced the decrease in users in 10 years, its shares also fell by 28 % in electronic operations in New York.
M. Rodríguez
Source: portafolio.co
