Netflix Ad-supported Subscription to be Available by the End of 2022

The New York Times reported on Tuesday that in the last three months of 2022, users could be offered a cheap subscription tier with ad-supported. This is an accelerated schedule for the streaming platform, which has long resisted including commercials on its platforms.

According to sources, the company also has a plan for cracking down on password sharing among subscribers. The new ad-based plans will be introduced in tandem with our broader plans to change for sharing. The platform’s note said that it is fast and ambitious and will require some trade-offs. 

These major changes to Netflix's long-standing business model are in the midst of this year's rough start to streaming services. According to a recent revenue report, Netflix has lost 200,000 subscribers in the first quarter of 2022 and is expected to lose another 2 million worldwide by the end of the second quarter of this year.

Netflix's share price plummeted 35% last month, abandoning its $50 billion market capitalization. Netflix announced in a shareholder letter last month that it intends to monetize account sharing.

In its latest note to employees, Netflix states that the legitimacy of Netflix ads was based on streamer ad support plans such as HBO Max and Hulu, and Netflix said these companies "mountain strong brands while offering an ad-supported service."