"Netflix" encounters a bottleneck and will make major changes

Netflix co-CEO "Reed Hastings" said in the company's first-quarter earnings interview that after years of insisting on sticking only to subscriptions, Netflix may now offer a low-cost, ad-supported package plan .

In fact, Netflix lost 200,000 subscribers in the first three months of 2022 and is expected to lose 2 million in the second quarter, and the company's subscriber growth has hit a wall.

"Hastings" commented on Netflix's plan to launch an ad-supported program, "Adding an ad-supported option may provide the company with new avenues for growth; in addition, in order to increase revenue, Netflix is studying how to use "shared passwords" from the current Instead of paying users, it is estimated that more than 100 million households receive money. "

Separately, Hastings said the company expects to finalize its ad-supported streaming strategy within the next year or two, "but thinks we're open to us offering lower prices and advertising as a consumer choice."

Basically, I am also a Netflix user. With the advancement of technology, from the old three TV era to cable TV, and now online video streaming, each generation has its bottlenecks, just like Netflix. As "Hastings" said—

"Those who follow Netflix know that I've always been against sophisticated advertising and really like the simplicity of subscriptions."

"But as much as I like that, I prefer to let consumers choose. It makes sense to give consumers who want lower prices and can accept advertising to get what they want."

Bloomberg Netflix Plans Lower-Priced Service With Ads, Marking Big Shift

However, nothing is perfect, there will always be trade-offs, and to be honest, even if Netflix does start to use advertising or other mechanisms to increase revenue, I think it makes sense, the market is so big, no matter how strong Netflix is, there are others such as Hulu and HBO. Max and Disney+ carve up the market, and even the above media have begun to have similar plans.

Last month, Netflix CFO "Spencer Neumann" said the "streamer" would be open to considering an ad-supported layer. "To be clear, this is not like our religion against advertising," Neumann said at a Morgan Stanley investment conference. While "it's not something we're planning right now," he said, "never say never."

For Netflix's current predicament, as an international streaming platform leaned on during the Covid-19 pandemic, when most people were stuck at home due to lockdowns, it expanded significantly. Now that countries are coexisting in the face of the epidemic, and thus starting to lose subscribers, Netflix's stock market value fell by 26 cents on Tuesday, losing nearly $40 billion, or it may be just part of its stock market value.

According to the survey, U.S. users of Gen Z, aged 14 to 25, actually spend more time enjoying video games and watching user-created movies, such as short videos on TikTok and YouTube, than watching movies at home Or TV, or even pay attention.

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