The second quarter of 2022 has been disastrous for Netflix, having lost almost a million subscribers, specifically 970,000 fewer users worldwide, making it the second consecutive quarter with a negative balance. However, the platform headed by Reed Hastings is breathing a sigh of relief because its forecasts were even worse expected up to two million fewer subscribers.
The new low-priced subscription would be cheaper than the current one but would include advertising and would lack some content
Despite this loss of subscribers, Netflix has earned more ($7.97 billion) than in the same quarter last year ($7.3 billion) thanks to raising the average subscription paid by subscribers, especially those in the United States, Canada and Latin America.
However in the streaming platform were already putting in place a strategy with which Netflix plans to recover that million subscribers throughout the third quarter with new pricing plans, and in those plans enters the addition of a new type of subscription, even cheaper than the current basic mode, although with a couple of considerations advertising and less content.
To bring this project to fruition Netflix has teamed up with Microsoft as a strategic partner to provide the necessary technology. This modality, whose price is still unknown, although it has been confirmed that it would be significantly lower than the current Basic subscription (7.99 € per month) and this price would be possible thanks to the inclusion of commercials. The arrival has not been announced either, but it is expected to take place at the beginning of 2023.
In addition to the inclusion of advertising this “Netflix low cost” could almost be called “Netflix Lite” since some of the content present in the catalog would not be available platform’s general catalog would not be available.
Essentially this would be third-party content, with which Netflix may have exclusivity agreements that include not being able to distribute them with ads. Those that do seem certain to be fully available are all documentaries, series and movies produced by Netflix itself.