Netflix plans to launch a cheaper subscription option featuring ads much sooner than initially expected. Back in 2007, Netflix began to offer subscribers the ability to stream content directly to their screens rather than having to receive DVDs through the mail. Ever since, Netflix has been one of the powerhouses of streaming platforms offering over 5,000 movies and TV shows, over 100 of which are Netflix Originals. However, due to the emergence of so many competing streaming services over the last few years, Netflix does not have the same necessity it once did to keep all of its subscribers.
Now, The Wrap reports that Netflix employees have received a note detailing that an ad-supported service will be coming to the platform as early as the end of 2022. Netflix CEO Reed Hastings mentioned the idea for an ad-supported option last month but stated it would take roughly a year or two to get started. The executives acknowledged that the move was “fast and ambitious” but noted that many other platforms offer an ad-supported version because people want cheaper options.
Netflix may be rolling out this ad-based option so quickly due to the platform’s significant loss of subscribers this year. Netflix reported a loss of over 200,000 subscribers in Q1 of 2022 rather than the expected 2.5 million gain. As a result, Netflix’s stock has plummeted, and the company has lost an estimated $70 billion in market capitalization. Due to this, it appears Netflix will begin to offer its cheaper ad-supported option and crackdown on password sharing sooner rather than later.
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Source: The Wrap