Netflix Tells Employees Ads May Come by the End of 2022

By Brad Pareso 

Netflix could introduce its lower-priced ad-supported tier by the end of the year, a more accelerated timeline than originally indicated, the company told employees in a recent note. (NYT)

Netflix rocked the streaming landscape last month when the company said it’s planning to introduce an ad-supported tier. While CEO Reed Hastings revealed nothing about a potential timeline for an ad-supported tier, industry experts agreed that it would be several years before Netflix had the framework to introduce an AVOD model. (Adweek)

But Netflix has struggled with a stagnating subscriber base and a plunging stock, down more than 70 percent year to date. An ad-supported tier could help attract and retain price-conscious consumers. (CNBC)

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Another revenue-generating area that Netflix has been exploring is possibly clamping down on password sharing among its subscribers. The note to employees also reportedly said Netflix will begin that password effort around the same time it is looking to debut the ad-tier. (CNN Business)

Netflix last month said it’s looking at ways to get paid by the estimated 100 million-plus households that currently use a shared password to access the service. It has kicked off a test in Chile, Costa Rica and Peru that lets subscribers pay an additional fee to let people outside their household access the service. (Variety)

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