Netflix to introduce lower-priced streaming plans: Here’s all you need to know

Netflix lost about 200,000 paying customers in the first quarter of 2022.

New Delhi: Online streaming platform Nextflix could soon launch more affordable streaming plans in a bid to revive its subscriber growth. Such lower-priced packages, if launched, will be supported with ads in what could be a major change for the company that has always shied away from the ad-supported model, according to media reports.  

The move comes on the heels of Netflix losing about 200,000 paying customers in the first quarter of 2022, the first such decline for the company in a decade. The company is expecting a further drop in the number of subscribers in the ongoing quarter. 

In a call on Tuesday (April 19) with Netflix investors, Co-Chief Executive Officer Reed Hastings highlighted the potential for advertising. According to the company’s official report, it could lose more than 2 million subscriptions in the next quarter.

While sharing the strategy for over the next year or two, Hastings said, "but think of us as quite open to us offering even lower prices with advertising as a consumer choice."

Hastings added, "Those that have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription. But as much as I`m a fan of that, I`m a bigger fan of consumer choice. And allowing consumers who would like to have a lower price and are advertising-tolerant get what they want, makes a lot of sense."

Hastings also pointed out, "I don`t think we have a lot of doubt that [the ad model] works. I’m sure we`ll just get in and figure it out -- as opposed to test it and maybe do it or not do it." Also Read: Redmi 10a affordable smartphone with 5,000 mAh battery launched in India: Price, specs

As of now, Netflix hasn’t come up with a complete plan for its ad-supported model. Therefore, the pricing of such a subscription isn’t out yet. Having said that, we may have to wait for a few quarters to get a complete picture of how Netflix mitigates the negative growth of its userbase. Also Read: WikiLeaks founder Julian Assange to be extradited to US, orders UK court