Here's Why Netflix Will Start Showing Ads Soon
Tired of paying almost $20 per month for your Netflix (NASDAQ: NFLX) subscription? Clearly, you're not alone. Shares of the world's largest subscriber-only video on demand (SVoD) platform tanked recently after the company reported some unexpected bad news.
During the first three months of 2022, for the first time in over a decade, Netflix reported subscriber numbers that had declined compared to the previous quarter. There are lots of reasons for Netflix's disappointing decline, but the largest one is a plethora of ad-supported video on demand (AVoD) options from giants like Roku (NASDAQ: ROKU), Disney, Comcast, and Amazon.
For years, Netflix's charismatic co-CEO Reed Hastings told investors that Netflix wouldn't even entertain the idea of showing ads, and his reasoning made sense at the time. Subscriber cash flows are predictable, which is incredibly useful when you're trying to create heaps of content to keep those subscribers from leaving.
Source Fool.com
