Your Netflix subscription might eventually get cheaper…provided you accept the ads. The CEO of the streaming platform, Reed Hastings, has revealed that he is working on this type of formula for his service, the details of which will be revealed “within a year or two”.
Reed Hastings made the announcement during Netflix’s quarterly earnings presentation on Tuesday, which lifted the lid on the first drop in subscription numbers in the platform’s history. Indeed, the company counted some 200,000 fewer members in its most recent report, which it attributes, among other things, to the disconnection of its service in Russia, in solidarity with the Ukrainian people.
It must also be said that Netflix fans, as well as those of other streaming platforms, have suffered several price increases in recent years, in an increasingly saturated market. This increase could also encourage many to give their password to their loved ones, Netflix estimating at more than 100 million the number of people who do so (out of 222 million subscriptions).
The platform has also been testing since March in a few South American countries the addition of sub-members to its account, for a fee, in order to fight against the scourge of password sharing.
According to Reed Hastings, offering followers of the platform a cheaper advertising service could be part of the solution to attract new customers.
It’s pretty clear that it works for Hulu; Disney does it, HBO did it. We have no doubt that it workshe mentioned.
The CEO clarified that Netflix will continue to offer ad-free subscriptions.