Reed Hastings, co-founder, chairman, and co-chief govt officer of Netflix, arrives for the annual Allen and Co. Solar Valley media convention in Solar Valley, Idaho, US July 6, 2021.
Brian Loss | Reuters
Netflix might roll out its lower-priced, ad-supported tier as early as this 12 months, a supply aware of the matter instructed CNBC.
Netflix executives instructed workers in a word they have been working to introduce the tier by the final three months of 2022. That will put it on a a lot quicker observe than the corporate initially indicated. Throughout Netflix’s most up-to-date earnings convention name, co-CEO Reed Hastings stated the corporate was nonetheless determining the mannequin and an ad-supported possibility would not be obtainable on the service for a 12 months or two.
However Netflix has struggled with a stagnating subscriber base and a plunging inventory, down greater than 70% 12 months thus far. An ad-supported tier might assist appeal to and retain price-conscious shoppers.
Netflix is additionally anticipating to begin cracking down on password sharing in that very same time interval.
The corporate stated final month it estimates greater than 100 million households globally use a shared password to entry its content material — 30 million of these within the US and Canada. That is contributed to income and subscriber progress headwinds, it stated.
The New York Instances first reported the accelerated timeline for the adjustments Tuesday. A Netflix spokesperson declined to remark.
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