Despite continuing to be the most popular streaming service, Netflix is currently having trouble. Today, the business also announced that its ad-supported tier won’t have access to the entire catalog as the most recent subscriber loss statistics show how severely Netflix is losing users.
Netflix had stated for years that it will not adopt the ad model, but the business now plans to introduce an ad-supported subscription tier in the early 2023. That new subscription will be less expensive, but it won’t include as much material.
The ad-supported tier will have full access to Netflix Originals, according to Deadline , but licensed content may or may not be reliable. Ted Sarandos, Netflix’s Chief Content Officer, explains:
We can now incorporate the vast majority of Netflix content that users watch in the ad-supported tier. Although there are several issues on which we are still in discussion with the studios, if we introduced the product right away, members of the ad-tier would enjoy it greatly. We will remove some more content, but not all of it. We don’t believe this will have a significant negative impact on business operations.
It’s not exactly a novel concept to restrict access to particular content on more economical subscriptions. HBO Max this year restricted access to its same-day movie premieres for its more affordable subscriptions, but skipping out on regular additions in a streaming repertoire is undoubtedly a major drawback of choosing the more affordable plan.
This information coincides with Netflix’s announcement that, in Q2 2022 alone, more than 1.3 million customers in the United States and Canada abandoned the service—more than twice as many as were lost in the previous quarter. This coincides with the growth of Netflix’s rivals, including Paramount, HBO Max, and Disney, who have all had millions of new customers in recent months, as noted by The Verge . Additionally, it coincides with Netflix’s ongoing price increases and crackdown on password sharing.
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