Netflix, a globally famous over-the-top (OTT) platform might shake up things a little after a poor performance in the last few quarters. The company is reportedly soon going to change its business model by introducing new plans with support for advertisements. Further, the company is also expected to go ahead with its plans of charging money from users to share passwords with others.
The New York Times got hold of an internal memo of the company which said that users will get to see a new cheaper plan with support for ads.
Extra Fees for Sharing Password Might Come as Well on Netflix
Netflix had recently said that there are more than 100 million households which are using Netflix but not paying for it. They are simply getting it from their friends or colleagues. Thus, the company plans to introduce a charge for sharing the password with other people.
Netflix is actually a little late to the party when it comes to rolling out cheaper plans with ad support. Major streaming platforms such as Disney+ Hotstar, HBO Max and more are already offering users such a plan.
It allows the streaming platforms in keeping their revenue in check plus also gives users a little more room in their budget to add their favourite OTT platform to the expense list.
Just how cheap the ad-free plan from Netflix would be is something that can’t be said for now. But it is definitely a model of business that the company desperately needs. Netflix has lost a large number of subscribers in the previous quarter and is expecting to lose a few more in the June quarter.
This signifies that users are not willing to pay for Netflix’s premium plans anymore. There are a lot of reasons why Netflix has started going down. The company will be counting on its new plans to bring some much-needed respite and help in gaining new users.