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Home Streaming

Netflix Could Introduce Ad-Supported Plan, Account Sharing Fees By End Of This Year

Those sharing passwords should prepare to pay a bit more.

by Ikmal Rozlan
May 11, 2022
netflix streaming ad-supported tier content subscription app

Image: napoleonschwan /Pixabay

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Netflix has had a rough year with its stock plummeting by almost 50% in just the last month, with the streaming service losing subscribers for the first time in almost a decade. Now, a report by the New York Times claims that an internal memo from Netflix executives outlined plans to introduce a cheaper ad-supported subscription sometime in the final three months of this year.

Co-CEO Reed Hastings said in April that the company might be considering an ad tier to rectify its stalled-growth issue, following in the footsteps of rivals HBO Max and Disney Plus. The strategy seems to be moving forward faster than anticipated as Hastings previously said Netflix would be trying to “figure it out over the next year or two.”

Another upcoming change that will affect users is an additional fee for users sharing an account with different households, which is already being tested in Chile, Costa Rica, and Peru. According to the memo, Netflix might implement the account sharing charge around the same time as the lower-cost ad-supported plan.

The streaming giant revealed during its earnings call that over 100 million households globally share a Netflix account and it wants to tap into it. While its net loss of subscribers for the last quarter was quite alarming, the platform’s growth had been waning since last year. However, it has made moves in emerging markets such as Kenya and Vietnam by offering free plans with limited content.

(Source: NYT)

Filed Under AdvertisingNetflixStreamingSubscription
Updated 2:37 pm, Wed, 11 May 22
http://lowy.at/YdLoY
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