For years, Netflix has said it won't show ads on its platform. But it looks like that principle will change as Netflix is rumored to be launching a cheaper plan that features ads.
The news came from an internal company memo to employees, which was first reported by the New York Times. Netflix recently announced that it has lost 200,000 subscribers and is feared to lose two million this quarter.
To cope with the shrinking subscriber base, Netflix plans to launch a cheaper package but with ads. Netflix CEO Reed Hastings initially said this plan would still be considered in the next year or two.
However, a New York Times report reveals that the plan is actually being accelerated and Netflix will introduce subscription plans with ads in the last three months of 2022.
In an internal memo to employees, Netflix executives exemplified how competitors like HBO and Hulu could maintain their brand while offering advertising packages.
"All major streaming companies, except Apple, have or have announced ad-supported services. People want options at a lower price, for good reason," the memo reads, as quoted by Gizmodo, Wednesday (11/5/2011). 2022).
A Netflix spokesperson said they had no comment on the memo. But in an email to Gizmodo, the streaming giant said it was exploring a plan with ads for interested users, but they would still offer a plan without ads.
A Netflix spokesperson also declined to comment on the price of the package with this ad and its position when compared to existing packages. But the New York Times says the new plan will cost less than the most popular USD 15.49 per month plan.
The internal memo also reveals Netflix's plans to crack down on users who frequently share passwords with other users who don't live in the same household for extra fees.
Netflix previously said there were more than 222 million households that were paying subscribers. But there are more than 100 million households who watch Netflix using other people's accounts without paying for access.
