Netflix May Introduce Ads-Supported Plan This Year

Daniel Attoe
Daniel Attoe

Updated · May 11, 2022

SHARE:

Techjury is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more.

The platform will accelerate efforts to bring in ads with a lower subscription fee trade-off.

Ads Coming Sooner Than Expected

After several years of insisting it will never happen, Netflix may be pushing up the roll-out of an ad-supported tier. According to The New York Times, the cheaper subscription option could come out within six months.

Last month, Netflix made a U-turn on its no-ad policy. In a quarterly sales interview, co-CEO Reed Hastings announced that the company would look towards exploring that “over the next year or two”. Hastings called the current model “the simplicity of subscription”, but added that “as much as I am a fan of that, I’m a bigger fan of consumer choice”.

Disappointing earnings results for the first quarter, which saw it lose subscribers for the first time in ten years, forced Netflix’s decision. It has seen rapidly declining stocks leading to two-thirds of its value wiping off.

The Times report mentioned a note to Netflix employees from the company’s executives. It indicated it could launch an ad plan within the last three months of the year.

“Every major streaming company excluding Apple has or has announced an ad-supported service,” the note said. “For good reason, people want lower-priced options.”

Indications also point to the streamer's plans to crack down on password sharing. It said that the new ad tier would come “in tandem with our broader plans to charge for sharing.”

Netflix added that rival companies like Hulu and HBO Max “maintain strong brands while offering an ad-supported service”.

Disney Plus, another rival streaming platform, announced an ad tier in March - in an effort to boost its subscriber base.

SHARE:

Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

Leave your comment

Your email address will not be published.