Will Netflix's new ad plan work?

Published 4 months ago at 17 May 2022

When Netflix announced its earnings in April it sent shares plummeting lower. Netflix announced a drop in subscribers for the first time in a decade. Furthermore, they also reported that they were expecting a further fall of 2 million subscribers for the coming quarter.

However, they also announced a plan for a lower price, but ad-supported subscription option! Last week the New York Times cited a note saying that the plan could be in operation by year end. Will Netflix share prices be able to gain on hopes that this plan will reverse the company’s falling subscriber numbers?

Over the last 10 years Netflix has gained an average of 14.29% between May 17 and July 16. The largest gain was in 2015 with a 31.20% profit. The company has not lost value during this period once! Time for more gains to come? 


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