The closing of the first fiscal quarter has not gone so well for Netflix. As announced, they have lost about 200,000 subscribers in this period. And according to projections, the current quarter could be much worse.

While there are tons of factors that combine for these results, Netflix is ​​already considering a number of strategies to win back subscribers. And one of them will offer the possibility of accessing a cheaper subscription. We tell you what it is.

An ad-supported subscription is what Netflix plans

Netflix knows that price can be one of the triggers for subscribers to switch to other streaming services. So you have a proposal: a cheaper subscription but with ads.

This was revealed by Reed Hasting, co-founder and CEO of Netflix, as mentioned in The Hollywood Reporter.

[…] I’m a bigger fan of consumer choice. And allowing consumers who would like a lower price and tolerate advertising to get what they want makes a lot of sense.

A radical change. Let us remember that just a month ago the financial director of Netflix assured that they were not interested in a subscription with advertising as part of their business model. However, as Hasting mentions, they are going to put consumers first. And on the other hand, they have seen that it has worked on other streaming platforms, so they trust that this model will also be successful on Netflix.

It is not a short-term strategy, since they must develop the proposal and test it before launching it worldwide. So Netflix could take up to 2 years to implement this offer on the platform.

Although they have not given too many details about this possible subscription model with advertising, Netflix has made it clear that it will stay away from any type of tracking to collect data.