The New York Times is reporting that Netflix Inc could launch a lower-cost ad-supported subscription plan by the end of the year, well ahead of schedule. According to the story, another money saving effort the streaming pioneer plans to implement around the same time is to start cracking down on password sharing within its subscriber base, citing an internal memo to employees.
The company last month posted its first loss of subscribers in more than a decade and signaled deeper losses ahead, a stark shift in fortune from the boom it recorded during the pandemic.
The lagging subscriber growth prompted Netflix to contemplate offering a lower-priced version of the service with advertising, citing the success of similar offerings from rivals HBO Max and Disney+.
Chief Executive Reed Hastings said in April’s earnings call that the company would “figure out (the plan) over the next year or two.”
Do you think an ad-version of Netflix will bring in more subscribers?