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According to the company, many people have been taking advantage of Netflix's well-priced subscription plan.
2022 has not been a good year for Netflix, as the market-leading streaming service provider announced in several quarterly reports that its subscriber base was shrinking and had to go into crisis mode to reverse the situation that put pressure on its stock. low price.
In this context, the company implemented cost-cutting measures (mass layoffs cutting projects) and in November launched its ad-supported subscription plan, which offers access to the platform for US$ 6.99 per month, much cheaper than the basic subscription plan. $15.49.
While an initial review concluded that people aren't really interested in the bundle available in 12 countries, Netflix's latest report completely refuted the skeptics. Summarizing the last quarter of 2022, the streaming giant announced that, instead of the previously expected 4.5 million, a total of 7.66 million subscribers purchased the Basic with Ads offer.
′′ 2022 was a difficult year, it started busy, but the end was brighter. We believe that going forward there is a direct path to increasing our revenues: further improving all aspects of Netflix, introducing paid sharing and building our advertising offering. As always, our flagship continues to delight subscribers and make the business even more profitable over time.” (Netflix press release)
As far as paid sharing is concerned, this is specifically about the profile sharing ban, i.e. the service provider wants to prevent multiple viewers who live in separate households from using the same subscription. The one family limit is planned to be introduced in the first quarter of this year, and to ease the transition, the platform has allowed you to transfer your profile to a completely new account since November.
The upbeat mood is indicated by the fact that, through the first quarter of 2023, Netflix expects a 4% increase in revenue, which it aims to achieve with a new co-CEO on board. Another big surprise from the financial report was that co-founder Reed Hastings will move to the role of Executive Chairman of the Board of Directors, so the company will be managed by Ted Sarandos and Greg Peters. The departure of Hastings, who spent 25 years at the helm of the company, had been in the making for a long time, and in 2020 they moved to co-director form with the promotion of Sarandos.
by mundophone
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