Netflix announces cheaper, ad-supported plans after losing 200,000 subscribers

After raising prices in the US and Canada back in January, Netflix is now mulling a price drop. CEO Reed Hastings revealed during the company’s quarterly earnings call that Netflix is planning to roll out cheaper ad-supported plans.

If you’re getting excited about the opportunity to pay less for Netflix, you may want to hold your horses. The streaming giant will examine what these cheaper plans could look like over the next year or two.

“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said on the call. “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.”

Netflix’s move seems to stem directly from the loss of 200,000 subscribers over the quarter gone by. This is the first time in more than ten years that the service has reported a decline in subscribers. The company is further forecasting a global subscriber loss of 2 million for the second quarter of this year.

At this rate, it doesn’t look like raising prices or charging customers extra for sharing their passwords with others (which the company plans to do) will be a wise move for Netflix.

What do you think of Netflix’s cheaper, ad-supported plans? Will you subscribe and give up your regular Netflix subscription to save some money? Take our poll above and let us know your thoughts in the comments section.