Will Netflix price cuts, ad-supported plan help add more users?

Netflix is expected to add 3.43 million subscribers in the April-June period compared with 970,000 subscriber losses in the year-ago quarter. (AFP/File)
Short Url
Updated 17 April 2023
Follow

Will Netflix price cuts, ad-supported plan help add more users?

  • Netflix hopes changes will help the company rebound after the slowdown of recent months

LONDON: Netflix Inc. is expected to report that it added some 2 million subscribers in the first quarter and investors will scrutinize whether recent price cuts and the launch of an ad-supported plan are tempting people to subscribe and stay on.
The company, which lost 200,000 subscribers in the year-ago quarter, returned to subscriber growth in the second half of 2022 but its pace of additions has slowed dramatically, forcing it to think of ways to squeeze out revenue from the 100 million people who use the service without paying for it.
To do that, the streaming giant has cracked down in some countries on password-sharing, or streaming Netflix by non-members who don’t belong to the same household, which may prompt people to drop the service as a knee-jerk reaction but they are likely to come back to it, analysts said.
The crackdown will have a “more meaningful impact” in the June quarter and Netflix could gain more than 10 million new subscribers as it converts free users to paid ones, Rosenblatt Securities analyst Barton Crockett said.
Netflix is expected to add 3.43 million subscribers in the April-June period, according to 16 analysts polled by Refinitiv, compared with 970,000 subscriber losses in the year-ago quarter.
In the quarter ended March 31, the company is expected to have added a net 2.07 million subscribers, versus a drop of 200,000 subscribers a year earlier. Netflix itself has stopped giving forecasts for the metric.

Netflix is set to post first-quarter quarter revenue growth of nearly 4 percent, according to Refinitiv, marking its second-slowest growth ever after a nearly 2 percent rise in the December quarter.
The March quarter lacked major releases with non-English shows such as Korean revenge drama “The Glory” and the third season of Mexican drama “La Reina del Sur” doing well, according to Jefferies.
Netflix has faced strong competition from Walt Disney Co. , Amazon.com Inc. and Warner Bros Discovery . Amazon knocked Netflix off the top spot in the United States last year, according to consulting firm Parks Associate.

Warner Bros said on Wednesday it will launch a new streaming service on May 23 called “Max,” combining HBO Max’s scripted entertainment with Discovery’s reality shows.
Netflix in November introduced a streaming plan with advertising for $6.99 per month in 12 countries, after resisting commercials for years. Disney’s Hulu and Disney+, and HBO Max already have ad-supported options.
“The role of advertising continues to grow in importance to premium (streaming services) as a part of their profitable growth strategies,” social media analytics firm Antenna said in a note last month.
“In 2020, only one in five new sign-ups were to ad-supported plans; last year, it was nearly one in three.”


Lebanon’s official media scale back Hezbollah coverage after Cabinet ban

Updated 12 March 2026
Follow

Lebanon’s official media scale back Hezbollah coverage after Cabinet ban

  • Information Minister Paul Morcos instructs outlets to comply with government decision
  • Journalists, social media urged to avoid content that could provoke hate speech, incitement

BEIRUT: Lebanon has begun implementing a Cabinet decision taken earlier this month to ban Hezbollah’s security and military activities by scaling back coverage of the group on official media platforms.

The measure, which was described in political circles as a significant and bold step, came after decades during which news about the party and the speeches of its leaders were published verbatim and broadcast live through official media outlets, like the state-run National News Agency, TV station Tele Liban and Radio Lebanon.

“No one is imposing censorship,” an official source told Arab News.

“Rather, there is a commitment to the decisions of the state. It is no longer possible for a speech that attacks the Lebanese government and the state to be published through its official media outlets.”

Information Minister Paul Morcos issued a circular instructing directors of official media outlets to comply with the government’s decision to ban the broadcast of speeches or statements by Hezbollah Secretary-General Sheikh Naim Qassem and statements issued by the group’s armed wing, particularly when they contain criticism of the state.

Morcos also ordered that Hezbollah statements be handled in the same manner as those issued by other political parties, meaning they should not be published verbatim. He further instructed media outlets to avoid using the term “Islamic resistance,” except when it appears directly within Hezbollah statements.

The first manifestations of the decision were Tele Liban’s abstention from live broadcasting a speech by Qassem and a statement made on Tuesday by lawmaker Mohammed Raad, who heads the Hezbollah parliamentary bloc.

The group’s supporters described the move as an attempt “to restrict the resistance, Hezbollah and its leadership in the official media.”

Some argued on social media that preventing the use of terms like “resistance” or “holy warriors (Mujahedin)” and replacing them with expressions such as “Hezbollah” and “fighters” was “aimed at brainwashing and stripping the party of its resistance identity.”

During a Cabinet session on Thursday, Morcos raised the issue of content circulating on social media that incites murder and sectarian strife. This comes against the backdrop of the war that Hezbollah waged from Lebanon against Israel on March 2, without state approval, which led to a sharp division in Lebanese public opinion.

Morcos, who is also Cabinet spokesperson, said after the session that what was being published “exceeds the bounds of freedom of opinion, the press and expression.”

Prime Minister Nawaf Salam considered it to fall under the penal code, specifically regarding crimes that harm national unity, he said, and that “we are against strife in all its forms.”

Morcos also urged journalists, influencers and social media users to remain aware of the sensitivity of the current situation and to avoid content that could provoke strife, hate speech or incitement.

He acknowledged, however, that, according to a legal study, he has no authority over social media, even on media-related matters.

“The Ministry of Information does not exercise a guardianship role and lacks judicial police powers,” he said.

“These authorities rest with the public prosecution offices, which are overseen by the minister of justice and fall within the domain of criminal law and criminal prosecution.”

The ban was agreed during a Cabinet session on March 2, after Hezbollah launched six rockets from Lebanese territory toward northern Israel, the first such attack since the November 2024 ceasefire, prompting retaliatory strikes.

The Cabinet reaffirmed that “the decision of war and peace rests exclusively with the Lebanese state and its constitutional institutions,” and called on Hezbollah to hand over its weapons to the state while limiting its role to political activity within the legal and constitutional framework.