Netflix announced on April 19 that its first quarter results for fiscal 2022 were disappointing. The streaming leader not only failed to meet subscriber growth expectations, but also lost 200,000 subscribers.
Co-CEO Reed Hastings told the conference that the company’s plans for an ad-supported subscription package in the future were seen as a response to poor performance.
Netflix has always insisted on being ad-free and respecting the user experience in the streaming media industry, but in the face of user loss and competition from other streaming media, they have to give in.
“Anyone who follows Netflix knows that I’ve always been against the sophistication of advertising, and I’m a proponent of the simplicity of subscriptions,” Hastings said. “Today, I’m more of a supporter of choice for consumers who want lower prices, pay attention to advertising Consumers with a relaxed attitude can get what they want.
The competition in the streaming media field is becoming more and more fierce, and Disney+, which has developed the best in recent years, also announced on March 4 this year that it will launch targeted advertisements.
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Hastings also said rival support for the ad program changed their minds: “Hulu is doing it, Disney and HBO are doing it, and we’re not skeptical of the program itself.”
In addition, Netflix also said that account sharing is the reason for the loss of users.
In theory, a Netflix subscription account can allow 6 users to log in, and these 6 users default to family and friends, but in fact it is not inferior.
The streaming giant said there are still about 100 million non-paying subscribers around the world accessing Netflix through account sharing, with 30 million of them coming from the United States.
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