Netflix admitted for the first time that it could start offering cheaper subscriptions backed by advertising revenue last month when it released its first-quarter results, which fell short of analysts’ expectations.
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Until then, the company, which places great emphasis on subscriber comfort but has recently faced more competition and an outflow of subscribers, has resisted the move, arguing that advertising will never be seen.
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In the first three months of the year, Netflix lost 200,000 subscribers for the first time in ten years. Another two million subscribers are expected to lose in the coming months.
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Shares of Netflix weakened sharply after the announcement of quarterly results, erasing about $ 70 billion (1.7 trillion crowns) of the company’s market capitalization. On Tuesday, the company’s shares added three percent and rose along with the entire Nasdaq index.
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Netflix currently offers a variety of subscription types, with a popular service in the United States with a tariff of $ 15.49 (about $ 367) per month. New subscriptions with advertising will cost less, writes NYT.
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Like Netflix, other streaming services are advancing. For example, HBO Max offers an ad-free service for $ 15 a month, and charges $ 10 a month for an ad-free service.
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