(NEXSTAR) – Netflix seems to be on its way to becoming the latest streaming service to offer an ad-supported subscription plan, according to a note recently shared with employees.
This is not surprising – during a call about revenue last month, Netflix reported about the first loss of subscribers in more than ten years, sending the company’s shares into free fall. In addition to discussion it is possible massacre with the exchange of passwordsexecutives have hinted that Netflix may soon offer subscribers cheaper plans with advertising support.
Other services, such as Hulu and Peacock, offer similar plans, and Disney + has on the way to the debut of such a proposal later this year. There is no advertising in Apple’s streaming service, except for promotions for its own content.
Netflix tested commercials in 2018 – calling them instead video commercials that appeared between episodes and movies – but offered users the opportunity to opt out.
In a recent note to employees, executives said they are looking to introduce a plan to support advertising at a lower price in the last quarter of 2022, This was reported by the New York Times Tuesday. And for those of you who share – or borrow – someone else’s account, Netflix executives say they plan to start cracking password exchanges around the same time.
Netflix did not immediately respond to Nexstar’s request for comment.
Netflix CEO Reed Hastings has never been a fan of advertising, instead viewing it as a distraction from the entertainment the service offers. Hastings too previously viewed password exchange as “something to learn to live with”.
When discussing quarterly earnings, Said Hastings It is believed that exchanging passwords, in addition to streaming competition, leads to “lower acquisition and growth”. In a letter to shareholders last month, Netflix executives reported that more than 100 million households use a different household account.
“It’s a great opportunity because these families are already watching Netflix and using our service,” he said the letter reads. Executives also mentioned how Netflix is testing new features to monetize password exchanges.
In March, Netflix said that while features such as individual profiles and multiple streams available through its standard and premium plans were “very popular,” they led to “confusion as to when and how Netflix can be shared.”
Two new features were introduced for members in Chile, Costa Rica and Peru that “allow members who live outside their family to do so easily and safely, and pay a little more.”
Earlier this year, Netflix increased monthly subscription fee in the US for all plans to have the service “continue to offer a wide selection of quality entertainment options”.
The Associated Press contributed to this report.
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