We’ve got bad news for Netflix users who enjoy an ad-free experience: the company recently announced that it’ll soon be adding commercials to its platform — and it won’t let you get away with sharing passwords much longer, either. Say it’s not like that!
Luckily, not all users will experience these streaming disruptions. Netflix is simply rolling out a cheaper tier supported by ads, as they announced last month. This tier was originally scheduled to roll out later (“in a year or two,” the company’s co-CEO previously explained). However, a note recently written to employees by executives says it will be implemented within the last three months of 2022, the New York Times reports. So enjoy your ad-free viewing while you can!
1. Netflix may launch a lower-priced version of its streaming service that includes ads.
Co-CEO Reed Hastings says the move aims to grow the subscriber base, noting that it makes “very good sense” to offer people a cheaper option. pic.twitter.com/tgU96twK8I
– BFM News (@NewsBFM) April 20, 2022
This is a first for Netflix; Unlike many of their peers, the company has never advertised – in fact, they had previously stated they would never do so. That decision to change gears is likely due in part to the streaming company losing subscribers — and a lot of money with it. In the first three months of the year alone, Netflix subscribers fell by a whopping 200,000. It’s no wonder they want to make some changes — even if it means disappointing loyal subscribers by introducing ads.
Netflix certainly won’t be the first streaming platform to introduce a more affordable, ad-supported tier. In fact, they’re coming to the game later than most, with Hulu and HBO Max already offering similar plans. We have to commend them for sticking it out this long!
This issue was raised in the company’s note to employees: “Every major streaming company except Apple has or has announced an ad-supported service,” it said. “People want cheaper options for good reason.”
But it is clear that people in addition wants ad-free options. In fact, research shows that many subscribers would rather give up Netflix altogether than watch ads.
Netflix users would rather cancel subscriptions than watch ads https://t.co/gYk1ujNAuF
— Daily Mail UK (@DailyMailUK) May 11, 2022
In addition to outlining the plan for this new layer, Netflix’s note to employees said the company intends to crack down on password sharing across multiple homes. Oops!
If you share a Netflix account with someone in a different city, you may be affected by this new policy. However, you don’t have to completely say goodbye to your binge habits — you just might have to start paying a higher price.
“So, for example, if you have a sister who lives in another city and you want to share Netflix with her, that’s great. We’re not trying to stop sharing, but we will ask you to pay a little more to share with her,” Greg Peter’s, chief operating officer, said on the company’s conference call.
The company believes the password sharing problem is one reason they lost money, but the public doesn’t believe it.
“Netflix will blame us for sharing passwords instead of raising the prices themselves to justify making a bunch of crappy movies and shows that literally nobody asked for,” one person tweeted.
“The Netflix CEO is an incompetent fool,” wrote another. “Everyone has a negative perception of the Netflix brand and with every new change (advertising, no password sharing, price hikes) the layoffs just get worse. And no amount of strange things will save them from their demise.”
Regardless of how users are feeling on Twitter, Netflix seems to have made its final decisions. It is clear that there will be many changes for the better and for worse for the platform. We just hope it doesn’t mess up our binge schedule too much.