There is no doubt that Netflix It is facing the most complicated period in its history. After announcing the loss of 200,000 subscribers at the beginning of the year, a figure that is expected to multiply in these months, the company began a series of measures to combat the decrease in users. With this, Inflation has been pointed out as one of the main reasons for this decline.
In an interview with Le JDD, a French media outlet, Ted Sarandos, the co-CEO of Netflix, mentioned that inflation, the decline in the production of smart televisions, and the departure of Russia, were the main factors that have been affecting the subscription numbers for this platform. This is what he mentioned about it:
“All customers ask themselves the question of the value of a subscription in relation to its cost.”
[La compañía se está] adapting to the slowdown in growth compared to projections without limiting spending on content production, which will reach 17 billion euros (more than 355 billion pesos) in 2022”
Alongside this, it was mentioned that the introduction of ads will be global and will make Netflix’s business model more complex. Thus, users will be allowed to choose different prices, thus attracting more public. On related topics, Netflix collapsed after the premiere of the second volume of the fourth season of stranger things. Similarly, the anime of Jojo’s Bizarre Adventure returns to Netflix.
Editor’s note:
It is clear that Netflix will do everything possible to return to first place in the streaming wars. Although charging for password sharing was not well received, the ads could work, but the risk of poor reception is still quite possible.
Via: Bloomberg