The advertised Netflix offer could arrive before the end of the year, as could paid account sharing.
While Netflix has long stated that its service will not include ads, we learned last month that the platform will offer a more accessible ad-supported offering. Co-CEO Reed Hastings said during the presentation of financial results that the latter will be completed “in the next year or two.”However, the offer could come earlier, before the end of the year, according to an internal memo.
Netflix promotional offer could arrive before the end of the year
In the memo, executives announced to employees that they want to submit an ad-supported proposal in the last quarter of 2022, The New York Times reported. The implementation of this proposal would coincide with the introduction of a feature that allows subscribers to share their password with people outside the home for less than a “classic”subscription.
Netflix will point out in this note that, other than Apple TV+, all video streaming platforms offer such an ad-supported offer. Hulu, HBO Max, Peacock have that option. The company even claims that some of them have managed to “maintain a strong brand”by placing ads.
Just like sharing a paid account
Netflix also recently announced that 222 million households are paying subscribers. However, more than 100 million people watch Netflix through someone else’s account without paying for this access. During the same meeting, COO Greg Peters stated that the company is “not trying to discourage this exchange”but intends to “ask for a little more to share.”Netflix began testing the paid feature in Peru, Chile, and Costa Rica in March.
After years of impressive growth last quarter, Netflix’s paid subscriber base shrank for the first time. The platform has lost 200,000 members – mostly due to the closure of the service in Russia – and is estimated to lose another 2 million this quarter. With the stock market down 50% last month, the company hopes this ad-supported offer and paid password exchange will help boost its revenue.