In an effort to attract new subscribers after the numbers began to decline sharply in early 2022, Netflix is finally preparing to roll out a lower-priced, ad-supported service.
In the company’s quarterly shareholder report, Netflix announced that it plans to roll out its ad-supported tier in “early 2023.”
The new ad-supported plan is intended to complement the company’s existing premium subscription tiers, which will remain ad-free. Other details weren’t disclosed, so it’s unclear whether the company intends to restrict content to paid subscribers, like competitor Peacock, or if advertising will be the only differentiator. best.
The move comes after it reported a loss of 970,000 subscribers in the second quarter, which is nearly half of the 2 million users the company predicted will lose in April, the company said. lost 200,000 paying viewers. Motivated by bad prospects, the company made a series of dramatic dismissal and strategic axes.
Netflix’s new ad-supported tier will be a tactic as the company tries to reverse its spiraling viewership. Other measures include recent price increase and try crack password sharing which company testing in Latin American markets. In Netflix’s second-quarter report, the company called that remedy “paid sharing” and told investors it plans to roll out password-sharing measures on a set-up basis. globally by 2023.