(This article is authored by Alar)
The world's highest streaming platform, Netflix submitted a report of its April - June contraction, where a total of 9,70,000 subscribers closed their subscription with the company which was a remarkable loss in its 25-year history. Launched on August 29, 1997, this streaming giant Netflix has just hit 1.3 billion hours of watching history for its 'Stranger Things' series, more than any other series.
According to reports, in April, the platform had recorded a 2 lakhs paid subscriber loss in the first quarter of 2022, its first in almost a decade. After the second quarter reports, Netflix has only 220.67 million subscribers. “Our challenge and opportunity are to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we have done for the last 25 years, and to better monetize our big audience,” the firm said in its official statement. On the lost subscribers, the US and Canada home to the highest number of cancellations in the quarter, followed by Europe. Netflix is currently redrafting its subscription plans and revising its strategies to stem stronger.
The company has decided to launch ‘ad-supported’ cheaper subscription plans from earlier 2023, collaborating with Microsoft as its advertising partner. Greg Peters, Chief Operating Officer (COO) and Chief Product Officer (CPO) of Netflix said that "Netflix believes the per-subscriber economics on the ad-supported plan will be 'neutral' with or better than what it sees with traditional subscribers.
Microsoft is investing heavily to expand their multibillion [dollar] advertising business into premium television video, and we are thrilled to be working with such a strong global partner. We're excited by the opportunity given the combination of our very engaged audience and high-quality content, which we think will attract premium CPMs [cost per thousand impressions] from brand advertisers." said.
"Our lower-priced advertising-supported offering will complement our existing plans, which will remain ad-free," the company added in the letter.
Netflix said it lost 970,000 subscribers from April through June averting worst-case scenario projections, predicted to return to customer growth during 3rd quarter, reports Reuters— ANI (@ANI) July 19, 2022
Netflix plans to launch an ad-supported option next year, Reuters reported Netflix as saying pic.twitter.com/LgHjEgoRBo