Streaming outlet Netflix is set to record its slow quarterly income growth this Thursday as its ad-supported plan works to attract customers in the saturating US market.
The case pressures the company to pull back on content spending this year. Due to the rising costs and difficulty financing production, Netflix has already been reeling under the strained customer base. Expanded competition from platforms such as Disney+ and Amazon Prime has added to the streaming conglomerate’s stress.
Netflix had pinned its expectancies on the launch of an ad-supported plan but has yet to catch the mark, as there has not been any significant increase in subscribers. The $6.99 per month ad-supported plan only has entry to some titles, driving the budget higher for several users and resulting in low subscription numbers. Netflix has already mourned hefty losses as subscribers gave up their membership in the first six months of 2022 due to the weakening state of the global economy.
Netflix drew 4.5 million customers in the fourth quarter, which would be the smallest number for the Christmas season since 2014, compared to the 8.3 million subscribers it earned the year before. The firm’s stock has dropped nearly 50 percent, with revenues expected to fall short of the previous quarter’s collection, only a 1.7 percent gain to $7.84 billion, the lowest since it went public in 2022.
Last year, the streaming giant cut several hundred jobs as it struggled due to dwindling customer spending, increasing production costs, and heightened competition. But a separate statement showed for one of its private jets, Netflix is employing a flight attendant, with the chosen candidate earning up to $385,000 annually.
An advert said, “the Netflix Aviation department provides exceptional, safe, and confidential air transportation.” For Netflix to keep applying joy worldwide, the crew “helps Netflix reach the world more efficiently and effectively,” the advertisement added.
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