Netflix Tells Employees Ads May Appear by End of 2022 - NYT

Reuters2022-05-11

May 10 (Reuters) - Netflix Inc could introduce its lower-priced ad-supported subscription plan by the end of the year, earlier than originally planned, the New York Times reported on Tuesday.

The streaming pioneer is also planning to start cracking down on password sharing among its subscriber base around the same time, the report said, citing an internal note to employees.

Netflix did not immediately respond to a Reuters request for comment.

The company last month posted its first loss of subscribers in more than a decade and signaled deeper losses ahead, a stark shift in fortune from the boom it recorded during the pandemic.

The lagging subscriber growth prompted Netflix to contemplate offering a lower-priced version of the service with advertising, citing the success of similar offerings from rivals HBO Max and Disney+.

Chief Executive Reed Hastings said in April's earnings call that the company would "figure out (the plan) over the next year or two."

Netflix has also said it would crackdown on users sharing passwords as competition and password sharing were making it harder to grow.

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Comments

  • mster
    2022-05-11
    mster
    Am I missing the point here? I see many ppl complaining about this Ads supported subscription tier, i believe it's a lower tier for those who don't mind sitting thru commercial breaks and will not affect the original tiers of subscribers. And from an investor point of view, beside the possibility of having more subscribers there will also be A new stream of Advertising Revenues coming thru!! 
  • NareshwG
    2022-05-11
    NareshwG
    They have to find a way to increase earnings 🤔
  • KennyBear
    2022-05-11
    KennyBear
    Wouldn't this be doing things against what consumers want?
  • girritant
    2022-05-11
    girritant
    Finally we get ads!!
  • L.Lim
    2022-05-11
    L.Lim
    Growth is not infinite. A business like netflix not being ready for this fact means they deserve to die out to a more competent and more well prepared competitor. Anyone saw the news about how the top people are paid in cash and not with company shares? Says so much about how invested into the company they are... 
  • Rabbit63
    2022-05-11
    Rabbit63
    Pls like
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