A source familiar with the matter told CNBC that Netflix could roll out its lower-priced, ad-supported tier as early as this year.
Netflix executives told employees in a note that they were working to introduce the tier by the last three months of 2022. That would put it on a much faster track than the company originally indicated. During Netflix’s most recent earnings conference call, co-CEO Reed Hastings said the company was still figuring out the model and an ad-supported option wouldn’t be available on the service for a year or two.
But Netflix has struggled with a stagnating subscriber base and a plunging stock price, down more than 70% year to date. An ad-supported tier could help attract and retain price-conscious consumers.
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Netflix is also expected to start cracking down on password sharing in that same time period.
The company said last month that it estimates more than 100 million households globally use a shared password to access its content — 30 million of those in the U.S. and Canada. That’s contributed to revenue and subscriber growth headwinds, it said.
The New York Times first reported the accelerated timeline for the changes Tuesday. A Netflix spokesperson declined to comment.
SOURCE: cnbc.com
