Employees at Netflix have apparently received a memo stating that an ad-supported service will be available by the end of 2022.
Netflix aims to provide a cheaper ad-supported membership option much sooner than planned. Netflix began offering users the option of streaming video straight to their screens rather than receiving DVDs in the mail in 2007. Since then, Netflix has grown to become one of the most powerful streaming platforms, with over 5,000 movies and TV series, including over 100 Netflix Originals. However, with the development of so many competing streaming services in recent years, Netflix no longer has the same need to retain all of its members as it once had.
According to The Wrap, Netflix employees have received a memo informing them that an ad-supported service will be available by the end of 2022. Last month, Netflix CEO Reed Hastings discussed the possibility of an ad-supported service, but said it would take a year or two to get started. The executives recognised that the move was "hurried and ambitious," but pointed out that many other platforms provide an ad-supported version because users choose less expensive solutions.
Netflix is missing one simple solution to its subscriber problems.
Netflix may be rushing to implement this ad-supported alternative because of the platform's huge drop in subscribers this year. Netflix lost almost 200,000 customers in the first quarter of 2022, rather than the 2.5 million predicted. As a result, Netflix's stock has fallen, and the company's market valuation has dropped by an estimated $70 billion. As a result, it appears like Netflix will start offering its less expensive ad-supported alternative and crack down on password sharing sooner rather than later.