Netflix announced on Tuesday that it will start offering a much cheaper plan that will support ads.
The giant streaming company has finally yielded after years of rejecting the calls to introduce ads on the platform. Netflix co-founder and co-CEO, Reed Hastings said that the plan “makes a lot of sense for consumers who would like to have a lower and are advertising tolerant.”
According to The Verge, the company has lost subscribers for the first time in a decade and has been reportedly open to many things that it rejected in the past as a result of the loss. The Verge reported that Ted Sarandos, who is the co-CEO of the company, hinted that the company might even consider moving to live sports too.
“I’m not saying that we’ll never do sports but we’ll have to see a path to growing a big revenue stream and a great profit stream with it,” Sarandos said.
According to BBC, the company has lost 200,000 subscribers in the first three months of the year 2022.
The company currently offers the following plans:
- $10 a month for its basic tier
- $15.49 a month for its standard tier, and
- $20 a month for its premium tier.
Netflix increased its prices last month — which might be another reason for the decline in the number of subscribers on the streaming platform. Before implementations like this one and cutting down on password-sharing, the company didn’t employ any other strategy besides increasing prices time and again to create more revenue and have more subscribers.
“Our revenue growth has slowed considerably as our results and forecast below show,” the company said.
“Our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds,” it said.
By Zintle Nkohla
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