Netflix may start showing commercials to boost revenue

Kristen Walters

After a long line of missteps in recent months, Netflix is considering using ads and commercials to help boost the company's bottom line. But is it too little too late?
Oleg Baliuk (Canva Pro license)

Last month we learned that the popular streaming service Netflix had lost nearly 200,000 paid subscribers in the first quarter of 2022, sending their stock plummeting.

The company attempted to blame the subscriber dip on "password sharing" and vowed to crack down on the practice to force the freeloaders to purchase their own subscriptions.

However, others weighed in and pointed at Netflix's lack of high-quality content. They claimed that the company's "unfocused approach" of quantity over quality doesn't work in 2022 when viewers expect high-quality programming that is more tailored to their interests.

The main argument highlighting Netflix's problem seems to be that the streaming service offers a lot of content, maybe even too much, but not much of it is worth watching.

But instead of fixing its content problem to boost revenue, the company is considering offering an "ad-supported" subscription option similar to competitors such as HBO Max, Discovery+, and Hulu.

While a lower-priced ad-supported subscription option may help bring in some new subscribers, it doesn't address the root of the problem. Additionally, the ad-free nature of Netflix is one of the features that has helped it stand out from the competition.

According to a recent note to Netflix employees, the company plans to introduce a lower-priced, ad-supported subscription plan sometime in 2022.

In the meantime, earlier this week, the company announced that it was laying off more than 150 employees, representing about two percent of its total workforce.

We're all rooting for Netflix to turn the ship around. Only time will tell.

Do you think a lower-priced subscription option with ads is the solution to Netflix's problem?

Share your thoughts in the comments.

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