It is reported that when Netflix released its financial report for the first quarter of 2022, it disclosed that it planned to launch more options, including subscriptions supported by advertising at lower prices. Ted sarandos, CO CEO of Netflix, revealed the reason in a recent media interview.
"For us, the most important thing is the simplicity of a product, a price point." "However, I think we can afford some complexity now," he added.
For many years, Netflix has opposed the advertising model and focused on subscribers. When asked whether he thought the lack of diversified revenue sources hurt the company, sarandos said: "I think it is a simple and complex trade-off. I think we have benefited more from simplicity in what we have done in the past 10 years."
The media previously reported that Netflix's advertising business may be bumpy.
According to previous media reports, Steve Shannon, CEO of swerve TV and former roku executive, said in March this year that Netflix has not authorized its programs to be used for streaming media broadcasting and advertising, and it must be more open in data to attract advertisers.
The media pointed out that at the earnings conference call that led to the sharp decline of Netflix's share price in April this year, Netflix founder Hastings expressed optimism about the advertising business.
"I think it's obvious that this is effective for Hulu. Disney is doing it, and HBO is doing it. I don't think we need to doubt that it will work. All these companies have figured it out," he said. "I believe we will enter this field and figure it out, not test it, or maybe do it or not."
At the time of this report, the company was in an unprecedented period. In its revenue report at the end of April, Netflix reported its first user loss in more than 10 years. The stock has fallen about 43 per cent since then.
In addition, Netflix also laid off more than 150 employees, and even canceled the animation program cooperated with Meghan Markle.
Recommended reading: how can streaming media break the situation when membership growth reaches its peak and the haze persists| Overseas weekly election