Ad-Supported Netflix Tier Planned for Last Three Months of 2022, Crackdown on Account Sharing Coming

A more affordable, ad-supported Netflix plan could be introduced before the end of 2022, Netflix told employees in an internal letter (via The New York Times).

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Netflix is currently planning to introduce the new ad-supported tier in the final three months of the year, with the plan aimed at attracting new subscribers who find the current pricing unaffordable.

The company has been steadily raising its prices for the last few years, and enacted a significant increase at the beginning of 2022. The basic streaming plan is now priced at $9.99, up from $8.99, and the standard plan that allows for HD streaming is priced at $15.49, up from $13.99 per month.

The highest-tier 4K Ultra HD streaming plan now costs $19.99, a $2 increase over the prior $17.99 price point. Netflix continues to be the only streaming service that prices by streaming quality, with other options like Disney+, Hulu, and Apple TV+ offering more straightforward pricing.

Netflix has long resisted implementing an ad-supported tier and has said multiple times in the past that the streaming service would never show ads, but it is hemorrhaging subscribers. Netflix in April said that it lost subscribers in the first quarter of the year, and it marked the first subscriber loss for Netflix in more than a decade. Netflix lost 200,000 subscribers, and expects to lose two million more next quarter.

The subscriber loss has been partially attributed to account sharing, which Netflix has said that it is going to crack down on. Netflix told employees in the letter that it plans to cut down on password sharing by restricting access to subscribers who share a household. Netflix estimates that 222 million paying households are sharing with an additional 100 million households that are not being monetized.

Netflix started testing an extra payment for those who share their Netflix accounts with people outside their households in March. In Netflix's current test markets of Chile, Costa Rica, and Peru, customers can pay an extra fee to share their accounts with two people outside of their household. When the test was launched, Netflix said that it was working to "understand the utility of these two features" before making changes in other countries.

Tag: Netflix

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Top Rated Comments

zachz Avatar
27 months ago
Time to say good riddance to Netflix — way too expensive for what it is, majority of their content is low quality.
Score: 50 Votes (Like | Disagree)
Number 41 Avatar
27 months ago
Netflix’s business model is doomed at their price point.

It made sense when they had everyone else’s content, but they aren’t worth $20 when you also need to pay $5 for Parks & Rec on peacock, $5 for Star Trek on Paramount, $10 for the Sopranos on HBO, etc.

They didn’t evolve as the rest of the industry formed around them.
Score: 34 Votes (Like | Disagree)
KaliYoni Avatar
27 months ago
I have a great idea for a business: a platform that consolidates all the numerous streaming sites–movies, local TV, sports, lifestyle, blah blah blah—into one, easy-to-use service with a single monthly bill.

Oh, wait a minute...
Score: 33 Votes (Like | Disagree)
Six0Four Avatar
27 months ago
Just bought a 5TB portable HDD. Setting up Plex as we speak. Peace Netflix ✌️
Score: 30 Votes (Like | Disagree)
TheDailyApple Avatar
27 months ago
Music piracy mostly disappeared because streaming services like Spotify & Music created an easier and more enjoyable experience. Netflix is making the user experience harder and less enjoyable.

If people can have a more enjoyable experience for free, piracy will remain alive and well.
Score: 27 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
27 months ago
I don't like Netflix anymore. Proudly cancelled my subscription long time ago.

The company has gotten greedy and they are charging for every little thing you can think of.

Apple TV+ for the win :)
Score: 23 Votes (Like | Disagree)