Netflix is having a harder time signing up new customers and keeping them watching, according to a Bloomberg Technology report. One analyst says the company's best path to growth may be its cheaper plans that show ads.
What the report says
Helena Wang, a research analyst at Phillips Securities, spoke with Bloomberg Technology about where Netflix goes from here. She sees growth coming from ad-backed offerings, which give the company more room to shape what it sells. Her title for the discussion was that ads offer Netflix flexibility.
The report also says Netflix is searching for its next big film or TV hit. To get there, it is pushing into TV, film, live events and sports.
Who it affects
Anyone who pays for Netflix could notice changes. The company may steer more people toward plans with ads. You may also see more live shows and sports alongside the usual movies and series. That could change both what you pay and what you watch.
What is not known yet
The material available does not include subscriber numbers, plan prices or dates. It does not say which live events or sports Netflix plans to add, or whether any current plan will change in cost. Those details would show how much the shift affects a household budget.
What to watch
- Any price changes to Netflix plans, with or without ads
- New live events or sports added to the service
- Whether Netflix promotes ad plans more often
The takeawayIf you pay for Netflix, watch for more nudges toward ad plans and more live and sports content, and check what your plan costs.