Netflix’s Ad-Supported Plan Could Launch By Year’s End

Netflix’s Ad-Supported Plan Could Launch By Year’s End

Netflix’s promised ad-supported tier and crackdown on password sharing could launch by the end of this year, with the streaming giant reportedly accelerating its timeline on the moves after losing subscribers last quarter.

Executives at Netflix told staffers that they aim to introduce a cheaper subscription with ads during the final three months of 2022, according to the New York Times. The company plans to start restricting password sharing around that same time, the report added.


Bringing commercials to Netflix by year’s end would be a much faster timeline than company leaders have previously signaled. On the company’s first-quarter earnings call last month, co-CEO Reed Hastings told investors that advertising was something Netflix was “trying to figure out over the next year or two.”

That itself was a big deal, given Netflix’s long-standing opposition to ads. But the company’s streaming rivals have shown that customers are increasingly willing to sit through commercials if it means paying less per month in subscription fees. While competitors like HBO Max and Paramount Plus continued to grow their customer bases last quarter, Netfllix lost 200,000 subscribers and expects to lose 2 million more in the current quarter.

Netflix has also blamed password sharing for its sluggish growth, estimating that 100 million households may be using accounts without paying for them. (The company has 222 million paying customers globally.) In March, the company started testing extra charges for subscribers to share passwords outside of their households, initially rolling out the changes in Chile, Peru and Costa Rica.

Greg Peters, Netflix’s COO, said during the last month’s earnings call that the company would “go through a year or so of iterating” before deploying a password sharing plan. Now, according to the Times, Netflix wants to roll out the extra charges “in tandem” with the ad-supported tier it aims to launch later this year.

Subscribe to our newsletter to catch every headline.

Cadence
Vinfast's First EVs Have Just 180 Miles of Range but Still Cost Over $55K
Vinfast

Vinfast, the Vietnamese EV company with headquarters in Los Angeles, shipped its first order of vehicles to U.S. soil from Hai Phong, Vietnam on November 25th. The batch of 999 automobiles is due to arrive here in California on Thursday this week.

The VF8 SUVs on board will have the difficult task of convincing American buyers that an unknown, untested Vietnamese manufacturer can deliver on a new technology. And so far, the company appears to be off to a rocky start.

Read moreShow less
David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

RELATEDTRENDING
LA TECH JOBS
interchangeLA