The Netflix service, which started many years ago, is now going to work on a new model. Netflix is now ready to offer low-cost plans with commercials, co-founder Reed Hastings said on Tuesday. Let us tell you that after years of protesting against ads on its streaming service, the company has made this decision after losing 200,000 subscribers in its first quarter, which is believed to be the first such decline in a decade. Let us tell you that this is the first time that Netflix subscribers have fallen since the streaming service became available around the world outside China six years ago.
Reed Hastings said, ‘I’m a big fan of consumer choice, and want to allow consumers who want a plan for a lower price and who can see the ads.’ Let us tell you that for the last several years, Netflix has been showing movies and TV shows without any advertisement. But now the company is about to make this big change.
Netflix claims that the reason for the decrease in subscribers is the war between Russia and Ukraine. Silicon Valley tech firm Netflix earned $ 1.6 billion in the first quarter of this year. Whereas the total earnings of the first quarter of last year were $ 1.7 billion. After the loss of 2 lakh subscribers of Netflix, the company’s stock has registered a decline of 25 percent.
According to the estimates of Netflix, there are 100 million people who are enjoying the service without paying. These are the people who use Netflix subscription of their relatives or friends.
Such a huge drop in subscribers prompted Netflix to say for the first time that it could offer a lower-cost version of the service with advertising. That is, in the company’s cheap plan, customers will see ads in the video while streaming.