Netflix, one of the most popular over-the-top (OTT) platform, has been changing things up a lot after performing poorly for some time now. Now reportedly the company is soon going to change its business model by introducing new plans with advertisements. Apart from this, the company is also expected to go ahead with its plan to charge users money for sharing passwords with others.
Ads will now be shown on Netflix
According to a latest report from the New York Times, Netflix will now offer plans for its users in which advertisements will be shown and in addition, users will be able to enjoy content by sharing passwords with each other.
Apart from this, it is also known that for sharing the password, the company will also charge some extra money separately.
Netflix recently said that there are more than 100 million households who are using Netflix but not paying for it. They are just enjoying the content with the help of account password of their friends or colleagues. Thus, the company is planning to introduce new plans to build a business on sharing passwords with other people.
As let us tell you that OTT platforms like Disney + Hotstar and HBO Max are already offering plans with such ads and if you want to enjoy the content without ads, then there are separate plans for that. But now Netflix, one of the world’s most popular platform, will also show advertisements with the aim of taking its revenue to the heights.
Nothing can be said about how cheap Netflix’s ad-free plan will be. But it is definitely a business model that the company desperately needs. Netflix lost a significant number of its users in the last quarter and is expected to lose some more in the June quarter.
This shows that users are no longer willing to pay for premium plans of Netflix. There are many reasons why Netflix is down. The company will rely on its new plans to bring some much-needed relief and help it acquire new users.