The potential reactions of Netflix's subscribers to the introduction of ads could be varied. Some subscribers might accept the change if it leads to a reduction in subscription costs or if the ads are not overly intrusive. However, others might react negatively, especially if one of the reasons they chose Netflix was to avoid ads. This could lead to a loss of subscribers, as was the case when Netflix missed analysts' expectations for subscriber growth and lost subscribers for the first time.
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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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