Netflix to Launch a Cheaper ad-supported Tier This Year

According to some latest reports, Netflix is reportedly planning to launch a cheaper ad-supported tier in late 2022. At the same time, the company begins cracking down on password sharing. Netflix told its employees of the planned changes but didn’t reveal many details.

Netflix to Launch a Cheaper ad-supported Tier This Year

Earlier, Netflix CEO Reed Hastings said the company would take time to roll out an ad-based tier, stating that it would “figure it out over the next year or two.”

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Netflix also said that the planned changes will be “fast and ambitious” and could “require some trade-offs.” The streaming service also highlighted that “every major streaming company excluding Apple has announced an ad-supported service”. To facilitate its users, it will provide “lower-priced options.”

It is worth mentioning here that Netflix is losing its subscribers. The company lost around 200k subscribers last quarter. The company also reported that its revenue growth has slowed down considerably. Not only this, but Netflix will lose two million more subscribers this current quarter.

Netflix recently hiked prices across its various subscriptions, it has partly blamed the subscriber loss on password sharing. To overcome this problem, Netflix has cracked down on password sharing by testing a new add-on to its service.

Read Also: Netflix Loses 200K Subscribers and 2 Million more to lose – Here’s Why