Netflix is already warning that it is preparing a shock plan to stop its loss of subscribers. As recognized by the platform itself, during the first three months of the year it has lost 200,000 users. And it has confessed it to its shareholders: it is possible that, between now and July, two million more subscribers will unsubscribe from Netflix. The company has been affected by the growing competition in the streaming platform sector, price increases in some countries and its exit from Russia.
Netflix has lost 200,000 users in the first quarter of the year and expects to lose another two million subscribers between now and the summer
To address this situation Netflix plans to tighten its policy with users who share their account on the platform. The company plans to increase the price of the fee for those customers who share their password with third parties.
Netflix has been testing a tool for this since March in Chile, Costa Rica and Peru. Now its intentions are to implement this system in all its markets, including the United States, over the next year. Netflix recognizes that it has yet to fine-tune this feature. Its goal is to that each user will receive a different bill depending on how many people they share their account with.
At the same time, Netflix is preparing a new subscription system with cheaper prices, but with more advertising. According to the company, this program will be ready over the next two years, and it expects to offer cheaper and more competitive rates to its customers without losing revenue.
The arrival of this ad-based system will be a milestone in Netflix’s 25-year history. Until now, the company had based its business model solely on paid subscriptions and outside of advertising revenues. In this way it reached 222 million users, but it seems that this model is starting to run out of steam.
