Less than two months after launching a cheaper, ad-supported tier to combat subscriber losses, some companies are taking payments back for ads that have not yet run, according to a report.
There is a close-up of the app icon on an Apple phone.
In some cases, only a small amount of expected viewers was delivered.
The model followed by traditional TV, where networks keep payments and owe advertisers, was not included in the deal with the initial advertisers.
Some executives said that not all advertisers have taken back money from the company, with some choosing to push their ad buys to 2023 when they think the audience will grow.
The executives said that the company is still looking for advertisers.
On Thursday, the streaming service's stock dropped.
Forbes reached out to the company, but it didn't reply.
More than 2 million people. After losing more than one million subscribers in the first two quarters of the year, the company gained more than one million subscribers in the third quarter. In the fourth quarter, the company expects to add 4.5 million subscribers, but it isn't clear how many of them will be ad supported. It was the biggest rising stock on the S&P 500 in the last six months.
In April, when it reported subscriber losses, it said it would consider launching a cheaper tier. In November, the new addition to the service was launched. This type of subscription does not include its full library or the ability to download programs. Disney+ has an ad-supported tier. The new streaming service will have a free tier when it is combined with Discovery+.
After months of decline, the streaming service has added over 2 million new subscribers.
The cheaper ad-supported tier will launch on November 3.
Is it possible that netflix will come back? Streamer is the best performing stock on the S&P 500.
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