Losing its users for the first time in a long time, Netflix is ​​planning a historic change on the platform.

Netflix announced it for the first time in ten years 200,000 users lost in the last quarter. As a result, its growth “slowed significantly” and its shares fell. The real culprit? According to Netflix they users sharing their accountsClaim that more than 40% of the user base does not subscribe to the service.

Netflix It is expected to increase the number of subscribers by 2.5 million In the first quarter of 2022, but clearly behind this target. The suspension of business in Russia cost him 700,000 subscribers, but without that loss, Netflix would only have added 500,000 paying global users, still well below its projection of 2.5 million.

Netflix

Netflix is ​​losing users and planning a strategy change

In the US and Canada, Netflix lost 600,000 customers due to recent price increases. It also lost 300,000 subscribers in Europe, the Middle East and Africa. But that’s not all, the company hopes losing 2 million more subscribers in the second quarter of the year.

Relatively high household penetration, including a large number of shared household accounts, combined with competition creates barriers to income growth.”

Netflix estimates that 222 million households paying for a subscription share their accounts with another 100 million households. 100 million homes that are not monetized. Therefore, the company is working to take new measures to prevent password sharing.

Netflix

Netflix is ​​planning a historic change

But that’s only one solution, as Netflix’s co-CEO Reed Hastings has announced that the company is considering the inclusion of a new subscription plan. This new plan cheaper than the current one but will serve ads in return to subscribers.

Those who follow Netflix know that I am against the complexity of ads and a big fan of subscription simplicity. But I’m as much of a fan of it as I am, an even bigger fan of giving the consumer choice. It makes perfect sense to offer what they want to consumers who want lower prices and have ad tolerance. So it’s something we’re looking at right now, and we’re going to try to figure it out in the next year or two. We are open to offering consumers even lower prices with advertising as an option.

Openly One of the best things about Netflix compared to traditional television was the absence of ads.. But that could end soon with this new plan coming in a year or two. A historic change in strategy to continue attracting users.

Source: i Padizate

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I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.

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