On April 19, Netflix announced that its numbers had fallen for the first time in ten years – losing 200,000 customers while meeting its goal of adding 2.5 million new subscribers
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Netflix has accelerated plans to roll out a cheaper subscription plan to retain customers after its quarterly numbers showed it lost 200,000 people in just three months.
The streaming service was one of the casualties of the cost-of-living crisis, with hundreds of thousands of users leaving the service to keep up with rising costs.
On April 19, Netflix announced that its numbers had fallen for the first time in ten years – losing 200,000 customers while meeting its goal of adding 2.5 million new subscribers.
They said they expect to lose another $2 million in the second quarter as the stock price fell significantly, wiping out about $70 billion overall.
In response, Netflix co-CEO Reed Hastings said the company was considering introducing advertising in a cheaper subscription package and would “figure it out in the next year or two.”
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A note to employees obtained by The New York Times revealed that the new cheaper offer is now set to roll out in the final quarter.
Reed Hastings, Netflix’s co-CEO, said last month that the company was considering launching an ad-supported, cheaper streaming service within the next few years.
The plan appears to have accelerated dramatically, and the service is now set to be unveiled later this year.
“Yes, it’s fast and ambitious and requires some compromises,” the note said.
“Every major streaming company except Apple has announced an ad-supported service,” the statement said.
“People want cheaper options for good reason.”
Executives noted that HBO and Hulu have managed to “maintain strong brands while offering an ad-supported service.”
Netflix offers its 221.64 million subscribers multiple plans — all without ads.
The most popular program costs £15.99 a month – it’s unclear how much the new one will cost.
Netflix executives said the ad-supported tier will roll out “along with our broader plans to charge for sharing.”
In March, it hinted at plans to charge people additional fees for sharing accounts with people outside of their household.
The streaming giant announced it is testing a technology that will ask subscribers to pay an additional fee if it detects people from multiple addresses logging into the same account.
Although Netflix’s terms don’t allow users who live apart to share an account, the practice has long been tolerated, resulting in password sharing.
The most expensive pricing plan allows up to four screens to watch different shows at the same time, meaning anyone with access to a viewer’s password could watch for free.
Netflix said it will soon start testing new features that will allow subscribers to pay to add “sub-accounts” for up to two people they don’t live with.
It’s testing the changes in Chile, Costa Rica, and Peru, with the additional accounts costing 30% to 40% of a basic membership.
In the UK, a monthly fee of £2.99 would mean a subscriber to the most expensive plan would be paying £21.97 a month for two people living elsewhere.
https://www.mirror.co.uk/money/netflix-launch-new-cheaper-plan-26934326 Netflix is rolling out a new cheaper plan with ads to win back 200,000 subscribers