Netflix premium Online entertainment subscription service, has revealed it is now considering adding advertisements to its platform.
The online entertainment service also announced that it is slashing its prices after they recorded a loss of 200,000 subscribers for the first time since 2011.
Netflix co-CEO Reed Hastings on Tuesday April 19, revealed that for years the online entertainment site has resisted advertisements on its streaming service, but with the turn of event the company is now “open” to offering lower-priced tiers with ads.
Hastings who has been against the complexity of advertising and a big fan of the simplicity of subscription cited that adding commercials or other promotions to the platform “makes a lot of sense” as it offer customers a cheaper option.
Reed added that much although a bigger fan of consumer choice, it will be appropriate to allow consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”
According to Market analysis, their massive subscriber loss was due to rampant password sharing, and inflation which led to a decrease in number of paid subscriptions.
Netflix management also spoke about their exit from the Russian market. They blamed it solely on on growing competition from recent streaming launches by Disney and Amazon.