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Report: Netflix working on an ad-based tier (Update: Netflix confirms the news)

Big changes are coming to Netflix sooner rather than later.
By

Published onJune 24, 2022

Netflix dramas on smartphone stock photo 1
TL;DR
  • Netflix is speeding up
  • plans to roll out ad-supported plans and password sharing blocks.
  • The company may be planning to unveil the changes in late 2022.

Update (6/24/2022): Speaking to WSJ, Netflix Co-Chief Exec Ted Sarandos has confirmed Netflix is definitely working on an ad-based tier. Not much is known about the tier, only that it will be cheaper than the current plans. It’s also unclear if it will have any other changes (like a smaller catalog of titles, etc). Netflix does make it very clear that ads will only be present in the upcoming budget tier, with more expensive plans sticking to the ad-free model.

Original (5/10/22):

Netflix is reportedly moving faster than expected with its plans to introduce ads and block passwords on the heels of its first subscriber drop in a decade.

Netflix has been looking for ways to continue growing and driving profits, despite significant competition from the likes of Amazon Prime, Hulu, Apple TV Plus, Disney Plus, Paramount Plus, and others. Its latest efforts involve introducing a cheaper ad-supported plan, as well as cracking down on password sharing. Despite evidence those measures were still a year or two away, a new report says Netflix may implement them as early as late 2022.

The New York Times is reporting that Netflix executives sent a note to employees saying they want to roll out the ad-supported plan in the last quarter of 2022. The note also said the company plans to crack down on password sharing within the same timeframe.

See also: Everything you need to know about Netflix account sharing

Netflix has raised prices a number of times over the years but has managed to continue growing. In its last quarterly report, however, the company lost some 200,000 subscribers, its first drop in more than a decade.

The drop has prompted Netflix to reevaluate its entire model, including testing methods to prevent password sharing. The company is looking to roll out new plans that would charge $2 or $3 more for sharing passwords with friends or family outside the home.

If the Times report is correct, it appears customers will have to adjust to these new changes sooner rather than later.

Next: How to get Netflix for free