Netflix has announced a new, cheaper package in an attempt to re-attract the customers it lost after the streaming service hiked up its prices. Unfortunately, you’ll have to sit through adverts. According to Netflix’s quarterly figures, the service lost 200,000 subscribers in three months, suggesting that the current cost of living crisis is having a dire impact on the business.
Netflix said they expected things to worsen before getting better. Indeed, when the second-quarter results were announced, they discovered that as many as two million people had cancelled their subscription, leading to a huge fall in the share price, wiping around $70 billion.
Reed Hastings, the Netflix co-chief executive, responded by announcing that the company are now considering introducing adverts on a more affordable subscription package, the ins and outs of which they plan to figure out “over the next year or two.”
In a note to employees leaked by The New York Times, Netflix revealed that the cheaper package is slated for launch in the final quarter. Last month, Reed Hastings said that the company were looking to unveil a cheaper, advertiser-supported streaming service within the next couple of years. However, the large number of people leaving the service seems to have convinced Netflix to launch it earlier than planned.
“Yes, it’s fast and ambitious and it will require some trade-offs,” Hastings admitted in the note, adding that “Every major streaming company excluding Apple has announced an ad-supported service. For good reason, people want lower-priced options.”
As it stands, Netflix’s most popular scheme costs £15.99 a month. It remains unclear how much cheaper the new one will be.