Uninterrupted binge viewing may be a thing of the past for some of Netflix’s subscribers. According to the New York Times (via The Independent), an internal memo was revealed to the streaming service‘s employees that detailed the introduction of a lower-priced tier for the platform supported by advertisements – which could roll out by the end of 2022.
In April 2022, the company revealed that it had lost 200,00 subscribers and that its share price had plummeted – shedding $70 billion in market capitalisation. Netflix chief, Reed Hastings, had told the streamer’s investors that the company would be cracking down on password sharing and potentially figuring “[an ad-supported platform] out over the next year or two” as a result.
However, this two-year plan may have been an overestimate, as the recent report suggests that ads to Netflix could come as early as the end of this year in 2022. This means that the new increased costs for password sharing, the new ad-supported plan, and the recent rise in Netflix’s prices as a whole will have coincided in a single and, potentially, quite expensive year.
In a previous note to shareholders, Hastings explained that the decision to bring in ads was to replicate competitors’ models. “Every major streaming company excluding Apple has or has announced an ad-supported service,” Hastings said. “For good reason, people want lower-priced options.”
In March, Disney Plus also revealed its decision to potentially move toward an ad-supported platform. So as the memo states, all of Netflix’s main competitors, apart from Apple TV Plus, are adding ads as a lower cost sign-up plan.
So, although Netflix’s ads may be upsetting to most of its subscribers, it isn’t that outrageous given the current market. Still, we are curious to see if its plans do prove financially viable in the long run.
For more Netflix content, here is our list of the best Netflix series you can enjoy right now.