Netflix to launch ad-supported plan in 2023 after losing 9.7 lakh subscribers

Netflix Inc.’s stock has not seen considerable growth in months. The company is currently trading at its lowest since 2013, 2.5 times its estimated sales. This is below the company’s 10-year average of 5.4 times the estimated sales.

This can be attributed to subscriber losses, leading to a loss in revenue. However, the company’s plan to launch an advertisement-supported service, and put a stop to password sharing, could prove to be a ray of hope for the company.

Also read: Netflix Q2 subscriber loss widens, but not as much as feared

If the changes come forth, investors may look forward to investing in the company, giving a boost to its stock.

Netflix is hoping to attract a new group of price-conscious customers and turn around its sliding membership numbers with a new ad-supported streaming bundle scheduled to launch in early 2023, according to a Variety report.

In April, Netflix announced it will introduce a new lower-priced ad-supported subscription plan for consumers, in addition to our existing ads-free basic, standard and premium plans.

Netflix on Tuesday (July 19) said it lost 9,70,000 subscribers from April to June, irrespective of the huge success of “Stranger Things” Season 4.

Also read: OTT: Money Heist’s Korean adaptation on Netflix mints mixed reviews

Last week, the company selected Microsoft as its global advertising technology and sales partner. Its stocks have gained by 9.4% since the announcement.

“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members,” Netflix said on July 14.