Can the new ad-supported subscription save Netflix’s sticky situation?


Can the new ad-supported subscription save Netflix's sticky situation?

To combat the massive loss of subscribers, Netflix will launch a new cheaper subscription plan with advertising. Will the ads be able to save the complicated situation of the streaming platform?

This 2022 is not being especially favorable for NetflixWell, for the first time in more than a decade, the streaming giant acknowledged having suffered a serious loss of subscribers in recent months, with a drop of 200,000 total subscribers.

This has led to Netflix begins to take action in this regard to counteract this massive loss of subscribersincluding the controversial measure to prevent users from sharing the Netflix account or the Netflix economic plan with advertising.

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NETFLIX with ADS on a new plan. Are you interested in its implementation?

At the moment it has not made clear how this new cheap subscription fee with ads on Netflix will work or when this option will be enabled, so we will have to wait for more details to be revealed in this regard.

What did confirm Ted Sarandos, co-CEO of Netflix, is that advertising will not be incorporated into the current rates, but it will be a completely new rate option for those users who are interested in acquiring Netflix at a lower price.

However, it is inevitable to ask the question. Can Ads Save Netflix’s Complicated Situation? According to the co-CEO of Netflix, it does seem that there are many people interested in a subscription of this style.

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as collected Best ofNetflixIn the United States, platforms such as Disney, Amazon Prime and Roku have implemented small ads that appear on screens, in exchange for a relatively low subscription price. This has made Roku grow its revenue much faster than Netflix.

This is why, if Netflix introduces a low-cost ad-supported plan and gets about 100 million subscriptions from non-users where they receive $40 ad revenue per user (as is the case with Roku), the company would accumulate an additional income of 4 billion dollars.

Also keep in mind that Netflix sharply increased subscription prices in the US, UK and Ireland, Australia and Canadaso it is possible that many who left the platform decide to return with this new cheaper rate with advertising.

So yes, in all probability the ads would save Netflix from the complicated situation in which it finds itself. But not only that, it also has to offer better quality products and continue betting on hits like Stranger Things, The Squid Game or The Bridgertons if they don’t want to lose more subscribers.


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