Netflix, one of the leading media streaming platforms globally, had long said that its service would not include advertisements, but that is about to change as the company recently said that it will roll out a cheaper ad-supported plan.

While the new plan was said to be rolled out over the next year or two, it appears that the company is planning to offer it sooner. In an internal memo, it is said that the ad-supported plan will be released later this year.

Netflix Logo

As per the report in The New York Times, the company’s executives have told in an internal note that the cheaper ad-supported plan will be rolled out in the last quarter of this year.

During the same timeframe, the company could also introduce extra fees for the subscribers who are sharing a password to their Netflix account with other people who do not reside at the same address.

It was noted in the memo that every major streaming platform apart from Apple TV+ offers a low-cost plan with advertisements, including Hulu, HBO Max, Peacock, and others.

The company recently revealed that there are more than 222 million households who are paid subscribers of Netflix but it also claimed that about 100 million households are using the service with someone else’s account.

Greg Peters, CFO of Netflix, said that the company isn’t trying to shut down password sharing but it is going to ask users to pay a bit more to share accounts. It’s noteworthy that the company is testing extra fees for account sharing in Peru, Chile, and Costa Rica.

These new developments for the streaming giant come after its subscriber numbers fell for the first time. The company reported that last quarter, it lost 200,000 members, mainly due to the shutdown of its business in Russia. It is also expecting to lose another two million users this quarter.

RELATED: 

Comments

RELATED ARTICLESMORE FROM AUTHOR