Netflix plan to introduce adverts for cheaper subscription packages
Could you handle ads on Netflix?
Streaming giant Netflix has endured slowing revenue growth in the first quarter of 2022, with rival services such as Disney+, Apple and NOW TV rising, and the conflict out in Ukraine causing a loss in users.
In new figures released earlier this week, it was confirmed Netflix had 200,000 fewer subscribers than the three months before, meaning it missed its growth projection by 2.7million customers.
And despite Netflix confirming earlier this year they'd put the subscription prices up once again, it seems they have a plan in place to bring the price down for some users.
Netflix CEO Reed Hastings has admitted the company are considering introducing adverts as a way to create a cheaper subscription plan for users.
Although admitting he'd previously been against ads on the platform, Hastings said: "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.
"Think of us as quite open to offering even lower prices with advertising as a consumer choice."
Despite this, no further information about a time scale or price plan was announced.
How much does Netflix cost in the UK now?Basic plan: £6.99
Standard plan: £10.99
Premium plan: £15.99
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As well as the 200,000 users they lost in the first quarter of 2022, Netflix predict to lose another two million in the next stage of the year.
Bosses are putting the loss of users down to password sharing, with the company estimating the service is being used by 100 million more than 222 million paying households that are registered.
With rumours swirling that Netflix could be about to clamp down on password sharing, Hasting did confirm the company are currently testing password-sharing subscription models in certain countries.
But for now, it looks like things are staying the same for UK users!
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