Netflix would like to introduce a cheaper subscription with ads by the end of this year, while also taking a crackdown on password sharing. That is stated in internal communication from the streaming service that has been seen by The New York Times.
Last month, Netflix indicated that it would eventually like to introduce a cheaper subscription with advertisements. CEO Reed Hastings then told investors that Netflix would investigate the possibilities for such a subscription and that it would look into it in the next one to two years.
From internal communications from Netflix, which owned by The New York Times, it would appear that such a subscription will be available in the short term. It states that the plan is to introduce the new subscription in the last three months of 2022. The message also states that Netflix will start taking action against people who share an account by sharing their password during the same period. It is not yet known how Netflix intends to do this.
The message would also say that the timeline is ambitious and that there will be some compromises as a result. It is also acknowledged that the intended plans are different from the timeline outlined earlier. Netflix has not responded to questions from the newspaper. Two anonymous sources have confirmed the information.
For years, Netflix has said it doesn’t see anything in subscriptions with ads. When the streaming service lost 200,000 subscribers in the past quarter, the company changed its mind. Netflix expects to lose another 2 million subscribers in the current quarter. It is the first time that the number of Netflix subscribers has not increased. A cheaper subscription and active action against password sharing should turn that tide.