The company’s Q1 earnings report points to the loss of two lakh subscribers, after which the streaming service planned to crack down on password sharing.
Netflix may introduce a low-budgeted ad-supported subscription plan bythis year. As per The New York Times report, Netflix told its employees that the company was looking to bring the ad-supported tier to the platform.
The company’s Q1 earnings report pointed to the loss of 2,00,000 subscribers, after which the streaming service planned to crack down on password sharing. Netflix’s Chief Executive Officer Reed Hastings hinted the company would figure out low-end plans over a year or two, TechCrunch reported. Hastings said, “I have been against the complexity of advertising and I’m a big fan of the simplicity of subscription.”
TechCrunch noted that when asked if Netflix would test ads in a small market before the global rollout, Hastings denied it and said, “I think it’s pretty clear that it’s working for Hulu. Disney is doing it. HBO did it. I don’t think we have a lot of doubt that it works — that all those companies have figured it out.”
Netflix declined to comment on the possible launch of the plan in Q4 2022, TechCrunch said in its report. However, ad-free plans will remain for customers preferring to use the streaming service without commercials.