Netflix Aims To Launch Cheaper, Ad-Supported Plan Next Year, + Will Charge Subscribers In Certain Countries An Additional Fee For Password Sharing
It looks like Netflix has some major changes coming to its platform soon!
According to reports, Netflix is cracking down on password sharing and has a cheaper streaming plan in the works too. The media company is hoping to turn around its declining subscriber numbers by offering a new ad-supported streaming package for price-conscious consumers. The new package will reportedly kick off in early 2023.
Netflix has yet to release the price for the upcoming ad-supported plan. However, they did promise it will be less than their most popular plan without any commercials, the Standard $15.49 package. The company released a statement about the ad-supported streaming package and said,
“Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering. So, our advertising business in a few years will likely look quite different than what it looks like on day one.”
In addition to adding ads, Netflix is also cracking down on sharing passwords.
Next month the company is launching an option in five Latin American countries (Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras) their “add a home” feature. This will allow users to enable access from an additional home legitimately, for an extra monthly fee of about $2-$3 a month.
According to reports, In March Netflix already rolled out its “add extra member” feature in Chile, Costa Rica and Peru, which lets customers pay a monthly fee to let individuals outside their households access the streaming platform.
Despite password sharing being a violation of Netflix’s terms of service, the company estimates that customers share their login credentials with more than 100 million non-paying households worldwide, including over 30 million in the U.S. and Canada. According to estimates by Wall Street firm Cowen, Netflix could generate an incremental $1.6 billion in global revenue annually if it launched the password-sharing payment upgrade plans worldwide.
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