Netflix may introduce cheaper tiers with ads by the end of 2022: Report-National

Netflix may introduce a lower-priced ad support subscription plan by the end of the year, earlier than originally planned, the New York Times reported on Tuesday.

Streaming pioneers are also planning to start cracking down on password sharing between subscriber bases at about the same time, the report said, citing an internal note to employees.

Netflix didn’t immediately respond to Reuters’ request for comment.

The company recorded a subscriber loss for the first time in more than a decade last month, suggesting a more serious loss, a significant change in fate from the boom recorded during the pandemic.

Due to the slow growth of subscribers, Netflix has begun to consider offering a lower-priced version of the service with ads, citing the success of similar services from rivals HBO Max and Disney +.

Reed Hastings, CEO, said in an April earnings call that the company “will have (plans) in the next year or two.”

Netflix also said it will crack down on users who share passwords because competition and password sharing are making growth difficult.

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