Inflation sucks. Not only has it ruined driving a car or eating out at a restaurant, but now inflation is trying to destroy our primary source of entertainment.
The streaming superpower Netflix recently released their second quarter earnings reports yesterday, disclosing a loss of subscribers for the second quarter in a row. Though the company knew a drop of customers was imminent due to rising costs throughout the country, Netflix reported a loss of close to one million subscribers between April and July. Back in April, at the end of quarter one, Netflix announced its first loss of customers in a quarter since 2011 with 200,000 accounts ditching the provider. With two quarters in a row, it seems there may be a slippery slope incoming for the entertainment giant.
Netflix has taken steps to combat the harsh economic times such as laying off hundreds of employees and working harder to prevent password sharing. However, along with the earnings report yesterday, Netflix also released details on a new subscription plan that will hopefully allow people struggling economically to retain their accounts.
Though not available quite yet, Netflix has announced they will begin to offer a subscription that includes commercials. Partnering with Microsoft for the project, Netflix will allow customers to have access to its entire media library for a cheaper cost in return for sitting through advertisements throughout the program. This cheaper option will allow families being hit hard with inflation costs to keep their beloved accounts, while also bringing in more revenue for the streaming service by advertising for other brands and companies — just like traditional cable television.
While there is no word yet on the release date of the option or its set price, it is suspected to cost between $5-$10 per month. This is a huge drop from the current price of $19.99.
It will be interesting to see how many people switch over to the cheaper option given the price may be cut in half. It will also be surprising to see advertisements on a service that gained notoriety for its commercial-less structure.
Only time will tell if people make the switch over. I for one am praying that my brother’s ex-girlfriend’s family doesn’t do so. I have no patience for ads and will be forced to find a new rich person to mooch off of if they do.