An internal statement circulating in the company, revealed by the New York Times, points out that the platform intends to have ads until the end of the year.
The numbers presented in the balance sheet for the first quarter, which showed the first drop in the number of subscribers in a decade, with the loss of 200,000 subscribers, messed with Netflix’s strategy. And the ads, always avoided on the platform, seem closer and closer.
An internal statement circulating in the company, revealed by the New York Times, points out that the platform intends to have ads until the end of the year and, with that, offer more affordable options to users. The news shows a rapid change in the company’s positioning, which is working with the expectation of losing more than 2 million subscribers by July.
In April, at the earnings call to investors, Reed Hastings, co-founder and co-CEO of Netflix, said the company was open to introducing the ad model and would try to “figure that out in the next year or two.” Either the discovery was faster than expected or the numbers are getting worse at an even faster rate.
behind the numbers
Among the reasons for the drops in subscribers, according to the company, are the dependence on third parties to enter connected TVs; account sharing, estimated at more than 100 million – today the platform has 222 million subscribers; competition with new streaming players and the audience of linear TV channels; and macroeconomic factors such as inflation and the war in Ukraine.
In an interview with PROPMARK, market professionals analyzed that the advertising model may be the way out for the platform to face a more challenging scenario, with the entry of new competitors and a more complex economic situation.
