Netflix to launch cheaper subscription plan with ads post losing 970K Subscribers: Report

After years of amassing a huge number of subscribers, the streaming giant Netflix has tumbled after losing 970,000 customers between April and July. The streaming platform is undergoing a massive loss with more people putting a halt on their subscription plans. To get things back on track, reportedly, the content streaming platform is about to release ad-supported subscription plans wherein it will be partnering with Microsoft.

Netflix to launch cheaper subscription plans

As per the reports of Hollywood Reporter, Netflix now has a total of 220.67 million subscribers, which is a decrease from the 221.64 million that was reported at the end of Quarter 1. Moreover, the number of people quitting the service accelerated in recent months. In wake of losing its loyal consumers, Netflix announced the arrival of advertising on the service wherein it will partner with Microsoft, which will handle sales and tech for the streaming company.

Also, it has made several changes to its subscription plans which would be more affordable than the current plans offered by Netflix. The ad-supported subscription will be in addition to the three options that are already available, the cheapest being $10 per month in the United States. In the letter sent to the shareholders, the streaming giant planned to release its ad-supported tier 'around the early part of 2023.' A part of it read-

"While it will take some time to grow our member base for the ad tier and the associated ad revenues, over the long run, we think advertising can enable substantial incremental membership (through lower prices) and profit growth (through ad revenues)."

The report published on Tuesday revealed that the loss in subscribers accelerated in the US and Canada with the highest number of cancellations in the quarter, followed by Europe. Moreover, they had to make these changes considering the competition it faces from other platforms like Apple TV, HBO Max, Amazon Prime, and Disney+. The current move by Netflix undoubtedly comes as an effort to attract more customers.

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