Netflix is also expecting to start cracking down on password sharing in that same period
Netflix Inc (NASDAQ: NFLX) is planning to roll out its lower-price, ad-supported tier by the end of this year.
In an internal note, the company executives have told employees that it is working to introduce the tier by the last three months of 2022, the New York Times reported on Tuesday, citing two people familiar with the matter.
During the most recent earnings conference call, Netflix co-CEO Reed Hastings said the company was still figuring out the model, and an ad-supported option wouldn’t be available on the service for a year or two.
However, the news indicated that the streaming giant is pushing hard and working on a much faster track than initially predicted.
Netflix has been struggling with its stagnated subscriber base and a plunging stock, which is down more than 70% year to date.
An ad-supported tier could help attract more subscribers and retain price-conscious consumers.
The streaming giant is also expecting to start cracking down on password sharing in that same period.
Last month, Netflix said it estimated more than 100 million households worldwide use a shared password to access its content — 30 million of those in the US and Canada.
Picture Credit: Ad Age
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