Netflix appears to be in a hurry to acquire new customers and continue to monetize existing accounts.
Netflix has been losing users since the beginning of the year, and its stock price hasn’t been exactly positive for the company either. Since the beginning of the year, the value of Netflix shares has fallen by around 70 percent. To counteract this, the company announced drastic measures a few weeks ago.
Originally, Netflix CEO Reed Hastings told investors that the company would advertise over the next few one to two years
would consider. A new report by New York Times
The magazine refers to an internal communication from Netflix management to employees. It states that the new subscription model with advertising is to be rolled out on the platform in the last three months of 2022. For Netflix customers, however, the fresh model does not actually have any disadvantages.
By the way, there are also no disadvantages for a little trick with which you can quickly and easily find films and series from your favorite category:
Netflix
This trick makes your streaming life easier
This is how Netflix works with ads
The subscription model with advertising is nothing new on the market. Competitors like Hulu or HBO from the USA have been offering a similar advertising subscription for their viewers for a long time. The idea is simple: if you’re willing to see an occasional advertisement when streaming films and series, you can choose a cheaper subscription level.
But if you want to continue enjoying the streaming service ad-free, nothing will change for you, because the existing subscription options will not change for the time being. With the measures, Netflix wants to win new customers for whom the current monthly subscription fee is too expensive.
The streaming giant has estimated that Netflix could lose up to 2 million subscribers in the third quarter of 2022. That goes from the Letter to Shareholders from the first quarter of this year.
Counter the downtrend
This could also be a reason why Netflix wants to introduce the new subscription level earlier than originally planned. The second measure could also come into force as early as this year. With this, Netflix wants to monetize the sharing of account data across multiple households. The streaming service has already tested this measure in Peru, Chile and Costa Rica. There, the company charges $2.99 more per household.
So if you share your account with someone who doesn’t live in your household, you could soon end up paying a few bucks more a month for your Netflix subscription. The notification also states that the new subscription model and the additional fee for account sharing are to be implemented at the same time.
You can find out which new films and series you can watch with the subscription in the following article:
Netflix in May 2022: All new films and series at a glance
Would you be interested in a cheaper Netflix subscription with ads, or would you stick with the old model? Please let us know.
