Netflix will reportedly debut an ad-supported streaming tier with a lower price, by the end of 2022, reports The New York Times.
The information comes from a recent memo sent to employees, detailing the lower-priced Netflix tier with ads, which may debut in the final three months of 2022, say sources.
The memo also says Netflix plans to crack down on password sharing at the same time, say those familiar with the matter, noting the lower-cost ad-tier would be “in tandem with our broader plans to charge for sharing.”
The new apparent timeline is now faster than what Netflix announced back in April, when it said a new lower-priced ad-supported subscription would be coming. The change contradicts what Netflix has been saying about avoiding ads on the streaming platform.
“Yes, it’s fast and ambitious and it will require some trade-offs,” said the note, according to the NYT.
Netflix also mentioned rivals such as Apple. “Every major streaming company excluding Apple has or has announced an ad-supported service,” said the memo, noting, “for good reason, people want lower-priced options.”
Last quarter, Netflix announced it had lost 200,000 subscribers, the first time it saw a loss in 10 years, and forecasted more losses to come. The day after it was reported Netflix was planning a lower-cost streaming tier with ads.
CNBC also corroborated the NYT report, similarly citing a lower-priced subscription with ads would be coming “as early as this year”, citing a source familiar with the matter, while also noting a change for password sharing is expected as well.