Netflix dominates the content streaming service market in the US. According to the data published in January this year, this company holds 25 percent of the market, while its closest rival Amazon Prime captured 19 percent. However, the business is not going very well. Because of myriads of reasons, this streaming service is losing millions of subscribers. As a result, it has canceled many top projects. Plus, not to allow subscribers to share their passwords with others, they have taken corresponding steps. But it seems all these steps didn’t save the day. To somehow combat the situation, the provider has risen prices for all plans earlier this year. The basic plan costs $9.99 per month, the Standard Plan will charge you $15.49, while the Premium plan will set you back by $19.99 every month. Today, two people familiar with the matter said that an executive had told employees that it plans to launch a low-cost subscription plan with ads by the end of this year. We’ve heard something about this previously. But no one has been thinking that Netflix will launch the new plan so soon.
A Cheaper Netflix Subscription Plan Is Coming
According to The New York Times, Netflix is planning to launch a low-cost ad-supported subscription service in the fourth quarter of 2022. At the same time, Netflix also plans to start cracking down on password sharing among users.
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Netflix stunned the media and advertising industry last month when it said it planned to offer a low-cost subscription service that includes ads. In fact, for more than four years, we’ve been hearing from Netflix that it would never display ads on its platform. That’s why, many Netflix subscribers have been thinking their favorite content streaming service will launch a cheaper, ad-supported subscription service in a few years only.
Obviously, Netflix’s business is facing serious challenges. Netflix shocked The Guardian last month when it released its first-quarter 2022 earnings report with a loss of 200,000 subscribers. This is also the first time the company has lost subscribers since 2011. Netflix also expects to lose another 2 million subscribers in the second quarter of this year.
In addition to rolling out ads, Netflix is also preparing to crack down on those who share passwords. Netflix thinks more than 30 million U.S. and Canadian households use shared passwords to access its content. Globally, there may be more than 100 million households using shared passwords.
Currently, Netflix offers multiple subscriptions, the most popular of which is $15.49 per month. Obviously, the new ad-supported package will cost less.