Reed Hastings, co-founder, chairman, and co-chief government officer of Netflix, arrives for the annual Allen and Co. Sun Valley media convention in Sun Valley, Idaho, U.S. July 6, 2021.
Brian Losness | Reuters
Netflix might roll out its lower-price, ad-supported tier as early as this yr, a supply aware of the matter advised CNBC.
Netflix executives advised staff in a observe they have been working to introduce the tier by the final three months of 2022. That would put it on a a lot sooner observe than Netflix initially indicated. During its most up-to-date earnings convention name, co-CEO Reed Hastings stated the corporate was nonetheless determining the mannequin and an ad-supported choice would not be accessible on the service for a yr or two.
But Netflix has struggled with a stagnating subscriber base and a plunging inventory, down greater than 71% yr so far. An ad-supported tier might assist appeal to and retain price-conscious customers.
Netflix can also be anticipating to start out cracking down on password sharing in that very same time interval.
The firm stated final month it estimates greater than 100 million households globally use a shared password to entry its content material — 30 million of these within the U.S. and Canada. That’s contributed to income progress and subscriber headwinds, it stated.
The New York Times first reported the accelerated timeline for the adjustments Tuesday. A Netflix spokesperson declined to remark.
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