Netflix is facing serious problems. This content streaming service has already canceled a few major projects. The reason is that the provider is losing millions of subscribers from year to year. In fact, for almost a decade, the provider has been growing rapidly. In effect, currently, it dominates the US market. But because of the decline in subscribers, the company has decided to take corresponding steps.
According to The New York Times, the company is accelerating the schedule on initiatives to turn those things around. Let’s see what this means.
Netflix has previously reported that there are over 30 million households in the US using others’ logins and passwords. Moreover, this number reaches 100 million globally. This is a serious number, and Netflix has been talking about pushing people who share their account logins to pay more openly.
However, this is not the only initiative Netflix is going to implement. Netflix co-CEO Reed Hastings has said that they are working on a new and cheaper plan that will include ads. And though according to his words, the low-cost Netflix plan will be offered in the “next year or two,” today, the Times reported that some insiders said Netflix executives had said the new plan will be launched this year. At the same time, Netflix will start a crackdown on password sharing in the same window.
By the way, Netflix’s rival Disney Plus has issued a statement saying it is going to launch an identical plan with a lower price but with ad support. In March, Disney Plus launched the plan. Now, when Netflix is also talking about it, we wait for Apple TV Plus and other streamers to issue similar statements.
Once Netflix launches this low-cost plan and disallows its subscribers to share their passwords, there is every reason to think the provider will be able to get back its potentially lost 10 to 20 million customers in the US.
At the moment, Netflix has several plans. The basic plan starts at $9.99, while the most popular subscription plan is $15.99. So we expect the new plan will cost much cheaper.