Amidst a struggle to maintain its dwindling userbase, Netflix is working with full force to introduce a new ad-supported tier.
Something rather shocking happened recently: Netflix recorded the first ever instance of the platform losing subscribers in over ten years. Of course, this didn’t come out of the blue: growth on the subscription-based streaming service has been slowing down to near stagnancy over the past year or so. However, this is the first time that the platform saw an overall net loss instead of the usual decrease in growth. The overall reaction to such news was, well, not positive, to put it in milder terms. In fact, Netflix’s stock fell by a notable amount as many Wall Street tycoons decided to sell off their shares in the attempt to invest in better places as soon as possible.
So, what happened and what’s Netflix planning on doing about it? Well, the streaming wars may have been going on for a long while now, but the competition is much more different from what it used to be when Netflix reigned supreme. With platforms such as Disney+ and HBO GO offering arguably more diverse selections, and inarguably having better originals and specials, the appeal for Netflix just isn’t the same anymore. There’s also the matter of Netflix upping prices while not necessarily managing to keep up with the competition content-wise. With Netflix having started out as one of the more affordable options available, it’s draw to consumers slowly weakened.
Netflix is clearly aware of these deficits and shortcomings, and has plans to recover and stride onwards. However, it’s first item on the agenda really feels like it’d be more effective as a killing blow than an adrenaline shot. Netflix has sent out memos to its employees, stating that the company is aiming to incorporate ads across the platform by the end of 2022 in the form of a new consumer tier. This will either come in the form of a cheaper subscription package, or will lead to other packages becoming a tad bit more expensive.
So, here’s the thing: no one likes ads, and some people hate them so much they go through the trouble of actively buying adblockers and VPNs in order to avoid them. With that in mind, does it seem likely that Netflix is going to make a killing off of this new idea? Perhaps initially, as people get drawn to a cheaper option. However, everyone’s going to get sick of the tier eventually, and realize that there are other options that already had better content, and now have no ads.
Read next: Sharing your streaming service passwords can be pretty disastrous reveals a new report
Something rather shocking happened recently: Netflix recorded the first ever instance of the platform losing subscribers in over ten years. Of course, this didn’t come out of the blue: growth on the subscription-based streaming service has been slowing down to near stagnancy over the past year or so. However, this is the first time that the platform saw an overall net loss instead of the usual decrease in growth. The overall reaction to such news was, well, not positive, to put it in milder terms. In fact, Netflix’s stock fell by a notable amount as many Wall Street tycoons decided to sell off their shares in the attempt to invest in better places as soon as possible.
So, what happened and what’s Netflix planning on doing about it? Well, the streaming wars may have been going on for a long while now, but the competition is much more different from what it used to be when Netflix reigned supreme. With platforms such as Disney+ and HBO GO offering arguably more diverse selections, and inarguably having better originals and specials, the appeal for Netflix just isn’t the same anymore. There’s also the matter of Netflix upping prices while not necessarily managing to keep up with the competition content-wise. With Netflix having started out as one of the more affordable options available, it’s draw to consumers slowly weakened.
Netflix is clearly aware of these deficits and shortcomings, and has plans to recover and stride onwards. However, it’s first item on the agenda really feels like it’d be more effective as a killing blow than an adrenaline shot. Netflix has sent out memos to its employees, stating that the company is aiming to incorporate ads across the platform by the end of 2022 in the form of a new consumer tier. This will either come in the form of a cheaper subscription package, or will lead to other packages becoming a tad bit more expensive.
So, here’s the thing: no one likes ads, and some people hate them so much they go through the trouble of actively buying adblockers and VPNs in order to avoid them. With that in mind, does it seem likely that Netflix is going to make a killing off of this new idea? Perhaps initially, as people get drawn to a cheaper option. However, everyone’s going to get sick of the tier eventually, and realize that there are other options that already had better content, and now have no ads.
Read next: Sharing your streaming service passwords can be pretty disastrous reveals a new report
