According to Bloomberg, in order to attract customers, the company intends to create a cheaper version of the service with advertising.

Netflix plans to create a cheaper version of its streaming service with advertising inserts due to the outflow of paid subscription holders. According to Bloomberg on Wednesday, this was announced by Netflix CEO Reed Hastings in a conversation with investors.

The agency did not provide additional details about Netflix’s possible new approach to providing access to its products, but clarified that this “will be a big change for the company.”

In quarterly reports published on Tuesday, Netflix announced the loss of 200,000 paid customers in early 2022, despite a positive forecast of 2.5 million users with a paid subscription. “The suspension of our service in Russia and the curtailment of all Russian paid programs had an impact on the net increase in paid services in the amount of minus 700 thousand, excluding this impact, the net increase in paid services amounted to 500 thousand,” the document said. The main reason for such a significant loss in the customer base, the company called a decrease in the number of users who purchase a paid subscription to the services of the service, and noted that this is observed “in all regions.” Against the background of these reports, Netflix shares fell by 25.7% in pre-trading.