Reed Hastings, co-founder, chairman, and co-chief government officer of Netflix, arrives for the annual Allen and Co. Solar Valley media convention in Solar Valley, Idaho, U.S. July 6, 2021.
Brian Losness | Reuters
Netflix might roll out its lower-price, ad-supported tier as early as this 12 months, a supply acquainted with the matter informed CNBC.
Netflix executives informed workers in a be aware they have been working to introduce the tier by the final three months of 2022. That might put it on a a lot sooner observe than Netflix initially indicated. Throughout its most up-to-date earnings convention name, co-CEO Reed Hastings stated the corporate was nonetheless determining the mannequin and an ad-supported possibility wouldn’t be available on the service for a 12 months or two.
However Netflix has struggled with a stagnating subscriber base and a plunging inventory, down greater than 71% 12 months so far. An ad-supported tier might assist appeal to and retain price-conscious customers.
Netflix can be anticipating to begin cracking down on password sharing in that very same time interval.
The corporate stated final month it estimates greater than 100 million households globally use a shared password to entry its content material — 30 million of these within the U.S. and Canada. That is contributed to income development and subscriber headwinds, it stated.
The New York Times first reported the accelerated timeline for the modifications Tuesday. A Netflix spokesperson declined to remark.