Very good news for Netflix subscribers who will finally be able to pay less

The year 2022 has started very badly for Netflix, which is counting on a new economic plan including advertising to reverse the balance. The streaming giant recently announced the results of a particularly difficult first quarter and revealed that it had lost 200,000 subscribers, a first in ten years. The company also predicted a future loss of 2 million subscribers… while it was counting on a gain of 2.5 million subscribers. These revelations scared off shareholders and Netflix’s stock price fell sharply. Faced with all this bad news, Netflix’s strategy is becoming clearer and things are accelerating. In particular, the use of advertising should be effective by the end of 2022.

According to an internal company memo revealed by the New York Times, advertising could well arrive on Netflix during the last three months of the year 2022, that is to say from October. In return, the platform will offer a cheaper subscription to its subscribers. A decision which shows the will to act quickly and which makes Netflix reconsider its ambition never to have recourse to advertising. The streaming giant also intends to toughen its strategy against password sharing between subscribers and those who share their account with several people should soon pay more.

The introduction of a cheaper formula including advertising on Netflix will bring the streaming giant closer to its competitors. Several other streaming services indeed have similar plans and HBO Max, for example, offers a plan with advertising cheaper than the plan without advertising. “Every major streaming company except Apple has or has announced an ad-supported service,” reads the internal memo revealed by the New York Times before adding: “For a good reason, people want cheaper options”. Netflix will therefore take the big risk of radically changing the experience of its subscribers on the platform, hoping that they will be convinced.


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