Netflix could be rolling out its cheaper, ad-supported subscription plan as early by the end of 2022.
According to reports, an internal memo supposedly revealed that the streaming service is looking to launch its newest tier by Q4 2022. Netflix is also looking to further crack down on password sharing this year, with the company already testing out a feature in Chile, Costa Rica and Peru that makes subscribers pay an extra fee in order for users outside of the household to use the streaming service.
Netflix co-CEO Reed Hastings initially announced the cheaper tier during an earnings call in late April. Around the time, it was also revealed that the service lost 200,000 subscribers during Q1 2022, causing its stock to plummet more than 20%. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally,” Netflix wrote in a letter to investors. “However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.” An ad-supported plan, Hastings believes, “makes a lot of sense” for customers who are not bothered by the ads and want to pay a cheaper price.
In other Netflix news, check out the trailer for the LeBron James-produced basketball film Hustle, starring Adam Sandler.
Tagged: ENTERTAINMENT