Netflix’s stock price is plummeting as the streaming behemoth deals with members who are abandoning the service in droves.
The company’s stock has plunged two-thirds since its peak at the end of 2021 in less than four months. It dropped 35.1 percent in a single day on Wednesday, the greatest one-day drop in more than a decade.
With difficult times looming, Netflix has hinted at probable product adjustments.
These modifications may have a significant impact on customers, particularly those who enjoy the product as is.
Netflix said it is looking into plans that contain commercials for a lower price during its quarterly results announcement, which revealed its first loss in global customers in a decade.
“Those who have followed Netflix know that I have been against the complexity of advertising, and a big fan of the simplicity of subscription,” said Netflix CEO Reed Hastings in a conference call with investors.
“But, as much as I am a fan of that, I am a bigger fan of consumer choice. And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.” he added.
Mr Reed told investors that this option could become a reality within the next two years.