Netflix to launch ad-supported tier when it cracks down on password sharing
Netflix is reportedly planning on launching a cheaper ad-supported tier in late 2022, around the same time as it begins cracking down on password sharing.
Netflix logo
The streaming giant told employees of the planned changes in an internal letter obtained by The New York Times. Although the company informed employees of the changes, it didn't offer many details about them.
During its last earnings call, Netflix CEO Reed Hastings said the company would take time to roll out an ad-based tier, stating that it would "figure it out over the next year or two."
However, in its internal letter, the company appears to have accelerated that timeframe, stating that the planned changes will be "fast and ambitious" and could "require some trade-offs." Netflix pointed out that "every major streaming company excluding Apple has or has announced an ad-supported service" -- adding that consumers want "lower-priced options."
Netflix has been bleeding subscribers in recent quarters. In the first quarter of 2022, for example, it lost 200,000 subscribers -- its first loss in more than a decade. It also expects to lose two million in the current quarter.
Although Netflix recently hiked prices across its various subscriptions, it has partly blamed the subscriber loss to password sharing.
The company plans on deploying measures to crack down on the practice later in 2022. In the internal letter, Netflix characterized the clampdowns as allowing users to "easily and securely" share their passwords at the cost of "paying a bit more."
Netflix said it would test those changes in specific regions, but didn't make it clear when it would roll them out more broadly. However, Netflix told employees that those mechanisms would debut "around the same time" as its ad-supported tier.
Read on AppleInsider
Netflix logo
The streaming giant told employees of the planned changes in an internal letter obtained by The New York Times. Although the company informed employees of the changes, it didn't offer many details about them.
During its last earnings call, Netflix CEO Reed Hastings said the company would take time to roll out an ad-based tier, stating that it would "figure it out over the next year or two."
However, in its internal letter, the company appears to have accelerated that timeframe, stating that the planned changes will be "fast and ambitious" and could "require some trade-offs." Netflix pointed out that "every major streaming company excluding Apple has or has announced an ad-supported service" -- adding that consumers want "lower-priced options."
Netflix has been bleeding subscribers in recent quarters. In the first quarter of 2022, for example, it lost 200,000 subscribers -- its first loss in more than a decade. It also expects to lose two million in the current quarter.
Although Netflix recently hiked prices across its various subscriptions, it has partly blamed the subscriber loss to password sharing.
The company plans on deploying measures to crack down on the practice later in 2022. In the internal letter, Netflix characterized the clampdowns as allowing users to "easily and securely" share their passwords at the cost of "paying a bit more."
Netflix said it would test those changes in specific regions, but didn't make it clear when it would roll them out more broadly. However, Netflix told employees that those mechanisms would debut "around the same time" as its ad-supported tier.
Read on AppleInsider
Comments
Another big problem is they think having a big catalogue of irrelevant content is more valuable than a small catalogue of higher quality titles.
I will never subscribe to a service that has ads, one pays to avoid ads.
Pachinko is top quality! Severance is amazing!
Incoming Season 2: Physical, For All Mankind
Incoming Season 3: Ted Lazzo, The Morning Show
I'm leaving lots out (movies, docs), but overall ATV+ is superb!
I can’t tell others what to do. But I encourage everyone to cancel Netflix and any provider that plans to charge or charges for having you watch ads.
I do agree with those who see Apple’s TV+ as being a step above the rest of the streaming pack in terms of quality. The only minor complaint I have about most of what I feel is the better quality content on Apple TV+, and even on some of the other streaming providers, is that too much of the content is series based. Depending on the storyline and genre, these series could literally go on forever.
If you’re a TV or video watching fanatic, or the subscription provider, I suppose the series format is nirvana. But if you don’t want to sign-up your future TV viewing self for an endless number of never ending series, it’s too much of a commitment. I often skip over content that I see is labeled as “Series 1 Episode 1 …” when I’m just looking for something to watch right now. Just looking for a more balanced mix, but it is totally understandable why the subscription providers want to push the series format to keep you plugged-in and paying - forever.
Don't expect the ads to be run at the frequency of American network TV. That is not the world norm. Two short breaks in an hour is more normal.