Netflix is reportedly ‘planning to introduce adverts’ in a major shift.
The subscription-based platform’s CEO, Reed Hastings, apparently revealed that he’s considering the strategy during a quarterly earnings call with investors.
Although he acknowledged that he’s generally ‘against the complexity of advertising,’ he went on to say it would give consumers more ‘choice’.
Find out what is happening with Netflix stocks below…
Reportedly, Hastings stated: “But as much as I am a fan of that, I am a bigger fan of consumer choice.
“And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.”
Currently, Netflix consumers aren’t faced with any advertising on the platform. At the moment, its subscribers can switch between films and TV shows at the click of a button, which is made possible due to the current monthly payment structure.
It’s believed that if adverts do make their way onto Netflix, it will mean this structure will change slightly, with people receiving the ads if they opt for the lower-priced tier.
The Wall Street Journal has reported that the company has suffered a loss of 200,000 global subscribers in its first quarter of 2022. Throughout spring, it’s expected to lose a whopping 2million more.
After the news broke, Netflix’s shares reportedly dropped by 17%.
There are many reasons why people may be unsubscribing from the platform. Most likely, it’s due to the current cost of living crisis and people making sacrifices when it comes to luxuries.
However, it could also be due to the fact Netflix has a ton more competitors than it did when it first launched. In the world of streaming, there’s now also Disney+, Amazon Prime and AppleTV+.
Watch our Video of the Day below…