The popular streaming service, Netflix, has confirmed that it has been working on a cheaper ad-supported subscription tier to cater to those individuals who are willing to save some money and don’t mind advertising on the platform. Netflix has taken the decision after the streamer lost over 200,000 users between Q1 2022 and Q4 2021.
Netflix co-CEO Ted Sarandos has confirmed in an interview that the company is working to create an ad-supported subscription to its streaming service and plans to launch the additional tier by end of 2022. However, he did not provide an exact data yet.
“We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” said Sarandos. “We [are] adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'”
He also mentioned that Netflix is currently in talks with several potential ad-sales partners for the new tier. According to some reports, NBCUniversal and Google are among the top-contenders. Furthermore, the Sarandos did not even reveal details about the pricing of the ad-supported Netflix subscription.
Netflix has been cracking down on password sharing as well and the company has begun rolling out a feature to some regions that will allow them to charge users if they want to share their passwords with anyone outside of their households.
The company has rolled out a pilot program for this feature in Costa Rica, Peru, Chile, where members on its standard and premium plans will be able to add two additional members to the account for an extra cost. However, the feature is still under testing and yet to be released on a global scale.