For the first time in over a decade, Netflix has lost subscribers. To battle its losses, the streamer is considering introducing adverts with a lower subscription fee.
Netflix has reported they lost 200,000 subscribers in the first few months of 2022. Not surprising, since the streamer saw an increase in new subscribers during the height of the pandemic, but with the society slowly returning to some sense of normalcy, people are more keen on spending their money elsewhere.
The streaming service also increased their prices earlier this year, a move that probably cost them some subscribers. A new study showed that over half a million people cancelled their subscription services for money-saving reasons in the first quarter of 2022. Netflix also completely pulled out of Russia following the Russia-Ukraine war.
There have never been adverts on Netflix, but that might now change. Executives are reportedly considering turning to ads in order to bring back some of that lost revenue. It would introduce a new, lower priced tier with adverts in order to entice people who want something cheaper to sign up. It will also pursue its promise to crack down on password sharing between households in the hopes of more new sign-ups.
Netflix is anticipating more losses in the coming months and introducing adverts might not help its case.
With so many streaming services to choose from, original content seems to be key. Disney+ has Marvel and Star Wars in its pocket and Amazon has hit big with its superhero series The Boys and is currently developing its big budget Lord of the Rings -series. Netflix has had some big hitters such as Bridgerton, which is the most watched English-language show on the streamer’s catalogue.
Netflix still lacks any big, known IP such as Star Wars. Sure, the streamer has got big franchises like Red Notice, which has two sequels in the works, and they nabbed the rights to Rian Johnson’s Knives Out 2, which must have cost them a fortune. Netflix has had decent success with coveted awards, with Jane Campion recently winning Best Director for The Power of the Dog. The film narrowly lost Best Picture to the AppleTV+ title CODA.
But unlike the hit Marvel TV shows like Wandavision and Moonknight, which link up to Marvel’s cinematic universe, ultimately forcing viewers to buy a Disney+ subscription, Netflix has very few must-see properties. If it wants to survive, or come out on top, Netflix will have to make itself into a must-have streamer with more than just Bridgerton and Red Notice.