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The potential impacts of Netflix's decision to introduce ads could be varied. On one hand, it could provide a new revenue stream for the company, which could help offset the losses it has been experiencing. This could potentially stabilize the company's financial situation and restore investor confidence, leading to a recovery in its stock price. On the other hand, it could also lead to a backlash from subscribers who are used to an ad-free viewing experience. This could result in further subscriber losses and damage the company's reputation.
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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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