Netflix is undoubtedly the king of the OTT market. The streaming giant, which has been ruling the market for years now, this year sent a shockwave around the world as it revealed that the company has lost more than 200,000 subscribers.
It was the first time in a decade that the company has lost its subscribers. After facing a major loss, multiple theories started coming about streaming pioneers’ future. Among all, the one thing that attracted most of the eyes was the streaming giant is planning to introduce cheaper plans with an advertisement, and back then responding to the sudden drop, Chief Executive Reed Hastings who has long snubbed the idea of advertisement suggested that the company would “figure out (the plan) over the next year or two.”
But, now it looks like Netflix’s boss’ had changed their mind and will introduce cheaper plans with ads soon. As per Reuters, the New York Times reported that the streaming giant is planning to introduce new cheaper plans that will include advertisements by the end of the year, earlier than originally planned.
The company has also told all its employees that they are also planning to shut down password sharing around the same time, the report said, via Reuters.
The streaming giant has long defended its no-ad policy and it was the only thing that made Netflix stand out when it comes to its competition with other OTT rivals.
The customers will witness a lot of changes in the platform in the coming months. Netflix, which has approximately 221.64 million paid subscribers worldwide, will take harsh steps on password sharing and other things that are hampering their platform.
“When we were growing fast it wasn’t a high priority, and now we’re working super hard on it,” chief executive Reed Hastings said of account sharing, via AFP.
“These are over a hundred million households that already are choosing to view Netflix; they love the service, we’ve just got to get paid in some degree for them.”
Netflix believes that factors hampering its growth include subscribers sharing their accounts with people not living in their homes.
(With inputs from the agency)