Netflix to start cheaper, ad-supported version of streaming services – here’s what you must know

Even as Netflix lost close to a million subscribers in three months ending June 30, 2022, which was the biggest ever quarterly fall in subscribers, the company has now decided to start a cheaper and advertisement-supported version of the streaming service.

Netflix to start cheaper, ad-supported version of streaming services – here’s what you must know
The company added a number of subscribers from Asia Pacific (APAC) in the June quarter, resulting in its revenue growth to 23 percent as compared to last year. (IE)

Even as Netflix lost close to a million subscribers in three months ending June 30, 2022, which was the biggest ever quarterly fall in subscribers, the company has now decided to start a cheaper and advertisement-supported version of the streaming service. While the service will start next year, it is not only expected to increase profit but also raise the number of members.

Between January 2022 till March 2022, the company lost close to 2,00,000 subscribers across the globe mainly due to the Ukraine war, which resulted in the suspension of the OTT platform in Russia. Apart from this, the other factors included increasing inflation, and the Covid pandemic, among others. In June 2022, the company lost 0.97 million subscribers. It, however, beat the projections that said that the company may lose nearly 2 million subscribers.

Notably, the company added a number of subscribers from Asia Pacific (APAC) in the June quarter, resulting in its revenue growth to 23 percent as compared to last year. However, the average revenue collection from each region fell due to price cuts in India.

In the same period in the APAC region, the company added 1.1 million new subscribers in the June quarter, as against 1 million in the same period last year. Importantly. The APAC region saw revenue growth of 23 per cent in June 2021. This even as the company’s average revenue member dipped 2 percent due to the price cuts in India last year.

It may be noted that Netflix’s 23 per cent revenue growth in APAC is mainly due to the fact that Netflix has added more subscribers in the region. This means that more subscribers are paying for Netflix at the moment as against 2021. The 2 per cent fall in average revenue per member due to price cuts in India suggests that each subscriber is paying less. As per the company, apart from in India, the APAC aem increased 4 percent as compared to last year on a constant currency basis.

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