The number of new (and great) original shows Netflix has been coming up with lately is not enough to address the problem with its subscriber base. 2022 alone was a rough start for Netflix, as it has reported losing 200,000 subscribers for the first three months. That’s a big deal for the streaming giant, as it is the first time in over ten years that their subscriber base is shrinking.
If that’s not concerning enough, Netflix also warned its investors that it is expected to lose another two million subscribers in Q2 of 2022. This warning is attributed to losing 700,000 subscribers after pulling out of Russia and losing another 600,000 subscribers in the US and Canada due to price hikes.
Losses aside, Netflix managed to soften the blow by focusing on international markets like Japan and India and cracking down on users sharing their accounts outside of their households.
Aside from that, Netflix is also looking at offering ad-supported plans–even if they are not in favor of it. “Those who have followed Netflix know that I’ve been against the complexity of advertising, and a big fan of the simplicity of subscription. But, as much as I’m a fan of that, I’m a bigger fan of consumer choice.” Netflix co-CEO Reed Hastings said.
Netflix is not the only one considering ad-supported tiers: Disney+ is set to announce one later this year, while HBO Max has an ad-supported tier that’s $5 more affordable than its regular plan. While having an ad-supported tier is a good move, it will not be favored in some countries like the Philippines, where a number of users would be fine with subscribing to the Php 149 Mobile Plan.