Netflix has lost members for the first time in a decade, according to a recent study. Sadly, the loss of nearly 200,000 members appears to be just the beginning of a much larger problem. In addition, the corporation has predicted that things would get even worse in the second quarter, resulting in the loss of millions of users. As a result, it appears like Netflix will introduce a freemium model for its streaming service.
Reed Hastings, Netflix’s CEO, has argued for years that the company does not require an ad-supported tier to maintain the quality of its service. However, this month, he altered his tune, and now stories are surfacing that indicate the process of bringing this new tier to the faltering service has sped up dramatically. This ad-supported Netflix tier is expected to appear by the end of the year, according to reports. It is hoped to go live in the last quarter of 2022. The holiday season is a great time to introduce a new service tier, as there is a significant increase in viewers during this time of year.
The intention is to launch it in the fourth quarter of 2022.
Netflix, despite its competitors’ ad-supported tiers, has been steadfast in raising its costs. Subscriptions to the service were most recently raised in March of 2022. The Premium plan costs $19.99 a month, while the Standard plan costs $15.49, and the Basic plan is $9.99. When compared to the competition, these costs aren’t good. There is a dramatic contrast between what the company’s costs were when they were first announced in 2014 and what they have become since then. Streaming services have become so crowded that users have an overwhelming quantity of options. This doesn’t even take into account this.
Regardless of how Netflix chooses to proceed, its users’ experience will be altered. But will the new ad-support tier be too little, too late for Netflix?