Reed Hastings, co-founder, chairman, and co-chief govt officer of Netflix, arrives for the yearly Allen and Co. Solar Valley media convention in Solar Valley, Idaho, U.S. July 6, 2021.
Brian Losness | Reuters
Netflix may just roll out its lower-price, ad-supported tier as early as this yr, a supply aware of the topic informed CNBC.
Netflix executives informed workers in a notice they had been operating to introduce the tier by way of the closing 3 months of 2022. That will put it on a far quicker monitor than the corporate at first indicated. All through Netflix’s most up-to-date income convention name, co-CEO Reed Hastings mentioned the corporate was once nonetheless understanding the fashion and an ad-supported possibility would not be to be had at the carrier for a yr or two.
However Netflix has struggled with a stagnating subscriber base and a plunging inventory, down greater than 70% yr thus far. An ad-supported tier may just assist draw in and retain price-conscious shoppers.
Netflix may be anticipating to start out cracking down on password sharing in that very same period of time.
The corporate mentioned closing month it estimates greater than 100 million families globally use a shared password to get right of entry to its content material — 30 million of the ones within the U.S. and Canada. That is contributed to income and subscriber enlargement headwinds, it mentioned.
The New York Occasions first reported the speeded up timeline for the adjustments Tuesday. A Netflix spokesperson declined to remark.
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