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04/19/2022 6:36 pm
As the streaming market expands with more and more competitors, Netflix it needs to change its business model to come face to face with other services. In this way, it has been revealed that the company is already considering the implementation of a subscription at a lower pricebut with advertising.
As part of an interview for the recent shareholders’ meeting corresponding to the first quarter of 2022, Reed Hastings, CEO of Netflix, mentioned being open to the idea of implementing a new subscription option, one that has advertising, this despite the fact that the executive has spoken about being against it in the past. This was what he commented:
“Those who have followed Netflix know that I am against the complexity of advertising and I am a big fan of the simplicity of subscriptions. But as much as I’m a fan of that, I’m a big fan of consumer choice and allowing consumers who want a lower price and tolerate advertising to get what they want makes a lot of sense.
That’s something we’re looking at now, we’re trying to figure it out over the next one or two years, but I think of us as being pretty open to offering even lower prices with advertising as a consumer option.
It’s not a short-term fix because once you start offering a lower priced plan with ads as an option, some consumers take it up and we have a large installed base that is probably pretty happy where it is. So think of it as being phased in over a couple of years in terms of material volume.
And in terms of earning potential, the online advertising market has definitely moved on, and now you don’t have to incorporate all the information about people that you used to incorporate.”
Hastings mentions that Hulu, as well as other streaming services, have been successful in implementing similar measures.. At the moment this is just a proposal. However, it is very likely that in the future we will see a cheaper subscription option, but with advertising.
Let us remember that Netflix has faced constant user losses in recent years, and in the case of Mexico it is no exception.
Editor’s Note:
The Netflix model is one that has livelihood problems. Although no one can deny the quality of the type of content they offer, this usually leaves the company in the red, and this measure, although controversial for some, could be what the company needs.
Via: IGN