Netflix says its ad-supported tier could launch as early as October

If you’re still fuming over the recent price hike to Netflix, here’s another reason to consider your subscription to the streaming platform.

by
Kevin Raposo
May 10, 2022

Image: KnowTechie

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Winter is coming, and so are Netflix ads. The company is inching closer to introducing ads to the streaming service, and they could come as early as the end of 2022, reports the New York Times.

We previously reported on the company’s plans to bring ads to the streaming platform, but the timeline Netflix floated around gave us the impression that the change would happen gradually, within the next year or two.

But according to the New York Times, the company told employees in a recent note that the company is fast-tracking its ad-supported tier and could release it in the final three months of the year.

On top of that, sources claim Netflix will begin clamping down on password sharing around the same time.

image of netflix stock price in May 2022 — Image: KnowTechie

So why the sudden change of plans? What happened between April and today? Shira Ovide, a technology reporter for the Times, makes a painfully obvious observation via Twitter: “That was fast! Perhaps related to Netflix stock falling 70% over the past six months?”

Ovide nails it right on the nose. Netflix lost a staggering 200,000 subscribers worldwide in its first quarter, and with that, its stock tumbled. Between password sharing and all the money Netflix spends on original content, the costs add up.

And the answer to that? A cheaper ad-supported tier. “Every major streaming company excluding Apple has or has announced an ad-supported service,” the company note to employees said. “For good reason, people want lower-priced options.”

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