For several months, the concerning fall in Netflix subscriptions has alarmed both producers and its customers, raising speculation as to how Netflix will combat this major challenge and what this will mean for its users. Reports issued a loss of 200,000 subscribers in the first quarter of 2022 which has affected Netflix greatly.
However, following the recent announcement of a “lower tier pricing system” coming this November with the introduction of advertisements, this has produced clarity for future prospective subscribers over this streaming service.
Given the cost of living, an individual prospective subscriber will more than likely opt for this option, saving them a significant amount of money. Such advertisements also provide opportunities for advertisers to expand their market and increase profits by reaching out to a huge and diverse audience.
With various plans in place ranging from different monthly prices to suit everyone, Netflix hopes to attract more subscribers and increase their revenue amongst competitors like Disney+ and Amazon Prime so they can thrive once again.
Market Capitalisation: The total value of a company’s market shares of stock
Revenue: The total amount of income generated by the sale of services and goods
- New York times – https://www.nytimes.com/2022/05/10/business/media/netflix-commercials.html
- Netflix – Netflix Starting From $6.99 a Month – About Netflix
By Sonam Gill, BeComAware Student Ambassador.
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