Netflix, one of the leading platforms for streaming media globally, has long said its service will not include ads, but that will soon change as the company recently announced it will introduce a cheaper ad plan.
Although it has been said that Netflix will introduce the new plan only sometime in a year or two, it seems that the company plans to offer it earlier. An internal letter says the company will publish the plan with the ads later this year.
According to a report by The New York Times, company executives said in an internal note that a cheaper plan with ads would be unveiled in the last quarter of this year.
During the same time frame, the company could also introduce additional fees for subscribers who share the password for their Netflix account with other people who do not reside at the same address.
The letter states that every major streaming platform except Apple TV+ offers a cheap plan with commercials, including Hulu, HBO Max, Peacock, etc.
The company recently revealed that more than 222 million households are paid Netflix subscribers. Still, it also claimed that about 100 million households use the service with someone else’s account.
Greg Peters, CFO of Netflix, said the company is not trying to turn off password sharing but will ask users to pay a little more for account sharing. It is important to note that the company is testing these additional account sharing fees in Peru, Chile, and Costa Rica.
This is believed to be that the number of subscribers has fallen for the first time since its inception. The company reported losing 200,000 members in the last quarter, reportedly due to the closure of its business in Russia. It is also expected to lose another two million users this quarter.
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