Those two huge changes on Netflix this year!
Netflix: Netflix is making two changes to increase revenue and increase subscribers. Thinking of changing the business model and introducing plans. However it was recently revealed that Netflix will be implementing both of these by the end of this year.
OTT platform Netflix is very popular all over the world. The platform has the highest number of subscribers. However Netflix has been in a bad situation for some time. Losing revenue for a few quarters. The number of users is also declining. With this, Netflix is ready for huge changes. Two key decisions were made to change the business model. However, the latest information is that these will be implemented only this year. The two decisions are to introduce cheaper plans with advertisements and to charge extra for sharing the password with others. However, it has been revealed that Netflix will implement these by the end of 2022. The New York Times revealed these things. Netflix has released an internet memo revealing an article with those things. Here are the full details.
Cheapest plans with ads
Netflix CEO Reed Hastings said last month that the idea was to bring in plans with advertisements next year or 2024, rather than existing plans. However, it has recently been revealed that this year Netflix will be bringing ad based plans. According to an internal note, similar plans will be launched between October and December this year. In India, Disney + Hotstar, Sony Live, Eros Now, G5, VOT OTT platforms have already launched plans with ads.
Bringing in plans with ads is expected to generate huge revenue from ads as well as subscriptions. Netflix also hopes that the number of users will increase if it offers cheaper plans. Because Netflix is losing subscribers for a few quarters in a row
Additional charge for sharing
The company recently said that nearly 10 crore people are getting Netflix services without spending any money. Their friends and relatives are taking the necessary passwords for login and using it for free. That said, we are losing a lot of revenue because of this. That’s why Netflix decided to bring plans with extra charges for those who want to share the password with others. Different similar plans already offer Disney +, HBO Max and a few other OTT platforms.
According to an internal note, Netflix has decided to launch plans with additional charges for password sharing by the end of this year. Netflix has already been experimenting with password sharing in Chile, Costa Rica and Peru since March. This will be extended to all countries. However the policy approach, prices may vary. Information that will be sub-accounts if the password is shared.