Netflix plans to launch a low-cost advertising plan by the end of the year to counter the impact of customer loss

Netflix is ​​facing a big challenge of subscriber churn.Reuters

new York Timesreport good,NetflixLippin’s launch of a lower-priced, but advertised subscription plan at the end of the year, much sooner than previously announced, underscores the fact that the streaming video giant has to cope with the challenges posed by slowing subscriber growth. is on fire.

Netflix executives said in an internal memo that the two sources said the target is to launch an advertised subscription plan in the fourth quarter of this year. Also, Netflix is ​​looking to start cracking down on the shared account problem at the same time.

Netflix revealed last month that it will begin offering a lower-priced, ad-supported subscription plan, surprising the media and advertising industries after years of public announcements that its video-streaming platform will never have ads.

The big change in policy is mainly because the business is facing huge challenges. Netflix lost 200,000 subscribers in the first quarter for the first time in a decade, and warned it could lose 2 million subscribers this season. Netflix’s stock price fell, wiping nearly $70 billion from its market value.

Netflix co-CEO Reed HastingsInvestmentThe man said he would study the possibility of adding ads to the platform and try to “get results in the next year or two.” But the latest internal memo suggests that the timetable for launching the new package has been expedited.

“Yes, this process is fast and ambitious, and it requires some trade-offs,” Netflix said in the memo. A Netflix spokesperson declined to comment.

The Netflix platform currently offers a variety of subscription plans. The most popular subscription plan costs $15.49 per month, and the new plan with ads will cost less. Other streaming video services have launched similar services. For example, HBO Max offers an ad-free subscription for $15 per month, as well as an ad-supported plan for $10 per month.

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