Netflix analyzes launching a cheaper subscription but with ads

This proposal came from Netflix to its investors in a virtual intervention, after announcing that it lost more than 200 thousand users in the first quarter of 2022.

This abrupt decline is also reflected in its net profits, which were 1,597 million dollars this year, compared to 1,706 in the past.

For this reason, it is evaluating the possibility of offering a cheaper subscription type but with ads, which would be available within this year or the next. This type of model is already used by its main competitors, such as Hulu and even HBO Max, which already offers free subscription with advertising. So also Disney Plus plans to launch a lower cost membership.

After announcing this fact, the company's shares fell more than 25% in after-hours trading. If this situation continues, Netflix stock can be expected to lose more than half its value this year.

Meanwhile, as part of the plan to regain momentum, the platform is also looking at ways to reduce password sharing among users.