Recent news about the ad-supported Netflix plans has been going around all over the Internet. This is actually the latest decision proposed by the company after its own shares plunges. This happens due to the subscribers’ drop.
Netflix revealed its ranks of subscribers shrank in the first quarter of this year. Its shares also lost a quarter of their value. Unfortunately, it was the first time in a decade that the streaming television service had lost its subscribers.
The co-CEO of the company that is Reed Hastings said that Netflix is now more open to offering lower-cost and also ad-supported plans. Previously, the company stated that it would only stick with the subscription-only plans. Looks like that would not be true anymore. According to the Variety website, this plan will be over next year or even two.
In addition, Netflix believes that factors hampering its growth include subscribers sharing their accounts with people not living in their homes. That is why they have decided to offer lower prices with advertising as a consumer choice.
On top of that, another factor crimping Netflix’s growth is intense competition from titans such as Apple and Disney.
Sources: Variety, Tech Crunch.