In an effort to draw new subscribers after numbers started plummeting in early 2022, Netflix is lastly gearing as much as launch a lower-priced, ad-supported service tier.
Within the firm’s quarterly shareholder report, Netflix introduced that it intends to launch its ad-supported tier in “the early a part of 2023.”
The brand new ad-supported plan is supposed to enhance the corporate’s current paid subscription tiers, which is able to stay ad-free. Additional particulars weren’t disclosed, so it’s unknown whether or not the corporate intends to limit content material for paid subscribers, like competitor Peacock does, or if advertisements would be the solely distinction.
The transfer comes after a reported lack of 970,000 subscribers within the second quarter, which already is almost half of the two million customers the corporate projected it will lose again in April, when the corporate mentioned it had misplaced 200,000 paying viewers. Spurred by the dour outlook, the corporate made a collection of dramatic layoffs and strategic pivots.
Netflix’s new ad-supported tier will likely be one tactic because the the corporate makes an attempt to reverse its spiraling viewership. Different measures embrace current worth hikes and makes an attempt to crack down on password sharing which the corporate is already testing in Latin American markets. In Netflix’s second quarter report, the corporate known as that treatment “paid sharing,” and instructed traders it plans to roll out anti-password sharing measures throughout its international set up base someday in 2023.