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Netflix ad-supported tier may launch by the end of 2022

Highlights

  • Netflix ad-supported plans may debut by the end of this year
  • It may crackdown on households sharing passwords around the same time
  • Ad-supported Netflix plans could be priced under $10 (~Rs 540)

Netflix may start showing ads to its users by the end of this year. A little over a month ago, Netflix CEO Reed Hastings said that ad-supported plans would be available on Netflix. However, he also mentioned that it would not be available on Netflix for a year or two. A new report from The New York Times says that the company told its employees that it plans to offer ad-supported plans by the end of 2022.

Also Read: Netflix slashes prices of its subscription plans in India: check new prices here

Rival streaming services such as Hulu, Disney, and HBO have been offering free or low-priced plans with advertisements for as low as $6.99 (~Rs 540) per month for several years. For years, Netflix has been publicly stating that it will never show ads. It appears that due to business challenges that the company has encountered in recent months, it has finally decided to introduce ad-supported plans.

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Netflix ads-supported plans may go live by the end of this year

The publication claimed that in a recent note to its employees, Netflix said that it is planning to launch ad-supported plans in the final three months of 2022. Netflix’s base plan costs $10 (~Rs 772) per month. Hence, it appears that its ad-supported plans may carry a sub-$10 price.

The company recently lost around 200,000 subscribers and is estimated to lose more users in the coming months. Launching ad-supported plans is expected to help Netflix sustain its user base and add more subscribers in major markets like India. However, it is unclear whether ad-supported plans will be introduced in India this year.

The company’s note to its employees also mentions that it has planned to crackdown on password sharing around the same timeframe. To be precise, it will possibly stop password sharing between people who do not live in the same household. Subscribers will probably see prompts to pay an extra fee to add people outside their household. According to a report by The Verge, Netflix has begun testing this feature in three markets like Chile, Costa Rica, and Peru.

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Anvinraj Valiyathara

Anvinraj has been writing about smartphones and other gadgets for over 10 years, with 10,000+ articles published to date. He owns a POCO X3 Pro and Realme X7 Max 5G. His interests include exploring new places, reading, photography, and church activities. At Pricebaba, he covers breaking news and features.