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The introduction of ads on Netflix could lead to several possible scenarios. One potential outcome is an increase in revenue, which could help offset the company's recent losses and missed expectations. This could potentially lead to a rebound in the company's stock value. However, it could also lead to a backlash from subscribers who are used to an ad-free viewing experience. This could result in a further loss of subscribers, which would negatively impact Netflix's bottom line. Ultimately, the impact of introducing ads on Netflix's future is uncertain and will depend on how the company manages this change.
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Let's jump back to April: Not only did Netflix miss analysts' expectations for subscriber growth by 2.5 million, it lost subscribers for the first quarter ever and announced it would lose more. Netflix's stock lost a third of its value the following day, leaving its share price down $500 dollars from its previous peak. So why did Netflix decide ads would fix this?
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