Netflix has accelerated the timeline for introducing a cut-price ad-supported tier, according to a note sent to employees.
Neetflix executives told employees they now plan to bring in the advertising model in the last three months of 2022.
These internal discussions were shared by anonymous staffers to the New York Times, and reveal the company plans to crack down on password sharing in concert with this new tier.
“Yes, it’s fast and ambitious and it will require some trade-offs,” the note said.
“Every major streaming company excluding Apple has or has announced an ad-supported service.
“For good reason, people want lower-priced options.”
Netflix said it lost 200,000 subscribers in the first three months of this year, and expect to lose two million more, prompting a market freefall.
Reed Hastings, Netflix’s co-CEO, initially told investors of the ad-supported tier that they would “figure it out over the next year or two.”
Seems the timeline has been moved closer.