NETFLIX NIGERIA REVIEWS SUBSCRIPTION PLAN TO ADDRESS SHORTFALLS

By Odusanya Omowonuola

Netflix might have found a way to reduce the cost of subscription for subscribers with the newly announced plans to introduce cheaper ad-supported plans, considering the concept of ‘cutting cord’ that suffered unprecedented setback in the recent times..

Netflix has over the years resisted advertisements on its streaming platform until now. Reed Hastings, Netflix’s co-CEO announced on Tuesday, April 20 saying, “Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription, but as much as I am a fan of that, I am a bigger fan of consumer’s choice and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”

This is following Netflix’s recent loss of 200,000 subscribers in the first quarter of 2022.  According to the streaming platform, 222 million households are paying for Netflix, but over 100 million more are sharing those accounts. With this cheaper AD support plan, subscribers who don’t mind seeing advertisements have the option to pay less and still enjoy movies on the streaming platform. Those who can afford to pay the full subscription can still enjoy the streaming app without advertisements.

Since Netflix came into the Nigerian movie industry it has dominated the industry and has been largely accepted among Nigerians not only as an alternative distribution platform or production partner but as the benchmark for quality cinematic experience for both critical audiences and serious filmmakers.

However, the issue of password sharing is not good news for the business in Nigeria here where a family of 6 to 8 could be sharing one Netflix account. The new cheaper Advert Supported plan will go a long way in encouraging people to have and subscribe to their own Netflix account and stream movies at a cheaper price

The new plan which will not take effect until a year or two as said by Hastings will mark a major shift for Netflix and also increase the number of subscribers which translates into more profit for the company.

It will be recalled that twenty minutes after Netflix announced the shocking news on Tuesday that for the first time in a decade, it actually lost subscribers during a fiscal quarter, a development that industry players summarised thus: “Netflix felt vulnerable in a way that it never has before.”

Picture credits- Internet