20 July 2022
Last month, we first heard whispers of Netflix working on an ad-supported tier. A new New York Times report claims that Netflix has accelerated plans for the same. It is now expected to release the ad-supported tier by the end of 2022, much faster than the previously expected timeline.
The report cites an internal note that Netflix shared with its employees. The note mentioned plans to release the lower-priced but ad-supported tier before 2022. It is aiming for the last three months of the year for the release. In other words, the ad-supported Netflix plan can arrive anytime starting October 2022.
The move is not surprising as just last month, Netflix reported a decline in the number of users for the first time in 10 years. It registered a loss of 200,000 users during the first month of the year. The more worrying sign for the leading streaming company is that it expects to lose about two million users in the coming months.
An ad-supported tier could help Netflix keep subscribers who might be ditching the platform due to subscription prices. It may also help attract those users who have never subscribed to the app due to pricing reasons. It is important not that despite being ad-supported, it will not be completely free. Netflix will certainly charge some fees but it will likely be a lot more affordable than its existing plans.
The same note also talks about cracking down on account sharing. Netflix says it will not stop users from sharing accounts with people they do not live with under the same roof. Instead, it will bump up the pricing slightly to make up for the sharing. This move is also expected to come into execution by the end of this year.