Netflix to launch cheaper plan to win back subscribers
With thousands of subscribers deserting the platform, Netflix has announced a new, cheaper package to try and lure those now former customers back. However, the downside is you'd have to sit through adverts.
Quarterly figures for the streaming service showed they'd lost 200,000 people in just three months. That proved that Netflix had become one of the victims of the cost of living crisis.
However, Nextflix said they'd expect the news to be worse once their second-quarter results are announced with as many as two million people jumping ship. As a result of that announcement, the share price fell, wiping off roughly $70billion in total reports The Mirror.
In response, Reed Hastings, Netflix's co-chief executive, said the company was considering introducing adverts on a cheaper subscription package, and would “figure it out over the next year or two.”
Now, a note to employees, seen by The New York Times, revealed that a new cheaper offering is being primed for launch in the final quarter.
Reed Hastings said last month that the company was looking to bring in an advertiser-supported cheaper streaming service within the next couple of years. However, the number of people leaving the service appears to have caused Netflix to rush the launch of the cheaper subscription.
“Yes, it's fast and ambitious and it will require some trade-offs,” the note said.
“Every major streaming company excluding Apple has announced an ad-supported service,” the note said.
“For good reason, people want lower-priced options.”
The executives pointed out that HBO and Hulu have been able to “maintain strong brands while offering an ad-supported service.”
Currently, Netflix's most popular scheme costs £15.99 a month – it is unclear how much the new one will be.
Netflix executives said the advertising-supported tier would be introduced “in tandem with our broader plans to charge for sharing.”
In March, it hinted at plans to start charging people extra for sharing accounts with people outside of their household.
The streaming giant revealed it is testing technology that will ask subscribers to pay an extra fee if it detects people at multiple addresses logging in to the same account.
Although Netflix's terms do not allow users living apart to share an account, it has long tolerated the practice, leading to password sharing.
Its most expensive price plan lets up to four screens view different shows at the same time, meaning anybody with access to a viewer's password has been able to watch for free.