Netflix is losing subscribers for the first time. For this reason, Netflix wants to introduce an advertising system and restrict account sharing.
Netflix ad announced that it will introduce the system and restrict account sharing. This is because Netflix announced that it lost more subscribers than it gained for the first time since 2011. Announcing its balance sheet for the first quarter of the year, Netflix had to state that it lost 200,000 subscribers. On top of that, netflix shares lost 26% in value. Netflix, which wants to make up for its losses, is trying to balance user satisfaction and company interests.
Netflix wants to introduce ad system and restrict account sharing
Explaining the reasons for this loss to his investors in a video, Netflix CEO Reed Hastings states that they lost 700 thousand subscribers after their withdrawal from Russia and that the pandemic still plays an important role.
With the onset of the pandemic, Netflix user numbers had increased significantly in 2020. However, this increase could not be maintained in other years. Disney+, Amazon Prime, Paramount+ and Youtube, which were included in the market, also increased the competition.
According to Netflix, which is a pioneer in TV Series, Documentary and Film broadcasting, more than 100 million subscribers share their user accounts outside of their household members. With the pilot application launched in Chile, Costa Rica and Peru, subscribers need to pay an additional $2.99 to share their accounts with others.
CEO, Hastings, stated their seriousness by saying, “We were growing very fast and we were not falling for it, but now we are very tight.” He also stated that they are working on subscription models with and without advertisements to leave the ad application to the users’ decision.
As it is known, Netflix Turkey prices were hiked in the past few days.