Netflix prepares low-price plans after losing 200 thousand subscribers

After having lost 200,000 subscribers, according to its report for the first quarter of 2022, Netflix announced that it intends to make low-cost memberships available, which would include ads.

It was the CEO of the streaming platform, Reed Hastings, who expressed the intentions of the leading company in entertainment content to experiment with cheaper subscriptions.

Although no details were given about the cost of low-cost memberships, they are expected to be implemented within the next two years, that is, they would be fixed for 2024.

“Think of us as quite open to offering even lower prices, with advertising as a consumer option,” Hastings said in remarks collected by Variety.

Although Netflix has always been against advertising, the CEO of the company emphasized that it is in favor of giving its subscribers different options, for which he pointed out that “allowing consumers who prefer to pay less, and tolerate advertising It makes a lot of sense to me.”

 

And the worst comes later. Since, according to the estimates of the streaming giant, the next four months (May, June, July and August), the company foresees the loss of 2 million more subscribers that would be added to the 200 thousand of the first four months of this 2022.

Given these expectations, Reed Hastings said that they hope to counteract it with new content contracting plans, following a model similar to that of Paramount + and Hulu : “there is no doubt that it works. I am sure that we will go in and solve it, instead of trying it and maybe do it or not,” he said.

In a general plan, the different platforms that offer streaming services made an investment of 50 billion dollars in new content during 2021 , in an attempt to attract or retain their subscribers, according to information provided by the researcher Ampere Analysis, who pointed out that last year’s figure represents an increase of 50% compared to 2019, the year before the Covid-19 pandemic.