Netflix loses 970,000 subscribers, and teams, up with Microsoft to tackle further losses.Â
The most popular online streaming platform Netflix lost nearly one million subscribers between April to July.
world’s leading entertainment Netflix noted a rampant number of audiences opting out of their entertainment service.Â
However, the numbers are not as alarmingly high as the company predicted. The current loss is lower than the two million the streaming platform had originally anticipated.
The company disclosed its largest-ever subscriber losses on July 19, with the US and Canada having the most cancellations in the quarter, followed by Europe.
The business also announced that it will introduce a more affordable plan in the first half of 2024 that will let advertising support its current goals.
Additionally, there are plans to monetize the additional 100 million homes that utilize the service but do not directly pay for it.
During the course of the pandemic, Netflix saw accelerating growth in subscribers. Notably due to their original content such as Squid Game and Stranger Things.
According to Netflix’s Chief Executive, Reed Hastings, the popularity of Stranger Things restricted the loss of subscribers going completely down the hill.
This year alone, Netflix’s stock price has fallen by roughly 70%, wiping approximately 180 billion dollars in shareholder equity. Since then, rival video streaming services have made significant progress in gaining viewers. Apple has received praise for its award-winning lineup of TV shows and movies, while Disney’s well-liked lineup of family-friendly movies and series continues to gain popularity.
In parallel with consumers cutting back on spending on discretionary products like entertainment due to the greatest inflation rates in 40 years, Netflix has been hiking its fees to help pay for its own original programming. Last year, Netflix started to diversify by including free video games in its streaming service but it has failed to trigger growth.Â
Netflix will team up with Microsoft to introduce a less expensive subscription package that comes with adverts in an effort to entice new customers.
Netflix made the decision to create a less-priced option following a disappointing first quarter in which it experienced customer losses for the first time in ten years and years of criticism of the idea of broadcasting advertising in general.
In addition to the three options that are currently available, the least expensive of which is $10 a month in the US, there will also be an ad-supported membership option.
The platform that will be used by advertisers to send adverts to Netflix users will be developed and managed by Microsoft.
