According to reports, two people familiar with the matter said today that Netflix, a streaming video service provider, has informed employees that it plans to launch a low-cost subscription model with advertising by the end of this year Obviously, the timetable is much earlier than expected. Netflix executives said the company plans to launch a low-cost subscription service supported by advertising in the fourth quarter of 2022. At the same time, Netflix also plans to crack down on password sharing between users at about the same time.
Netflix said last month that it planned to provide a low-cost subscription service including advertising, which shocked the media and advertising industry. For many years, Netflix has publicly said that it will never see commercial advertisements on its platform. Originally, the industry expected Netflix to launch this cheaper ad supported subscription service in a few years.
Obviously, Netflix's business is facing severe challenges. Netflix last month released its first quarter earnings report of 2022, which shocked Wall Street by losing 200000 users. This is also the first time that the company has lost subscribers since 2011. Netflix also expects to reduce another 2 million users in the second quarter of this year.
In addition to advertising, Netflix is also prepared to crack down on those who share passwords. Netflix said more than 30 million U.S. and Canadian families are expected to use shared passwords to access their content. Globally, more than 100 million households may use shared passwords.
Currently, Netflix offers multiple subscription services, and its most popular package is $15.49 per month. Obviously, the cost of the new ad supported package will be lower.