After the price hike announcement and tighter rules for password-sharers, it looks like Netflix is throttling down, and may even launch a cheaper plan with ads, after it experienced a decline in subscribers for the first time in years.
During its quarterly earnings call, Netflix CEO Reed Hastings announced that they may soon introduce cheaper plans that are ad-supported.
Hastings has always been against “the complexity of advertising” and has always favored a simplified subscription model. That’s why they introduced a mobile-only plan, which is more attainable while still dodging ads.
But now, the CEO is saying that he’s “a bigger fan of consumer choice.” This led them to the decision of possibly launching a cheaper Netflix plan for those who are “advertising-tolerant.”
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This move possibly came after the company lost 200,000 subscribers last quarter. That’s the first time the company has reported a decline in users over the last 10 years. What’s worse, Netflix forecasts that it could lose 2 million subscribers in the next quarter.
But don’t get too excited, though, as the company said they will have to study these cheaper plans for a year or two.
At this rate, Netflix might want to hold off on those reported price hikes. They may also want to have lax treatment of users that are sharing passwords.