Netflix is confirmed to introduce a new cheaper ad-supported plan for the first time. During the latest Q2 2022 earnings interview video, a Netflix executive announced that this subscription plan will not offer all content on the platform. The streaming platform aims to roll out this plan “around the early part of 2023.”
Netflix Ad Supported Tier
According to the official statement, “Today, the vast majority of what people watch on Netflix, we can include in the ad-supported category. There are a few things that aren’t — that we’re in talks with the studio about — but if we launch the product today, ad tier members will have a great experience. We’ll remove some of the additional content, but certainly not all of it, but we don’t think that’s a material stop to the business. ,
This ad-supported tier will be rolled out in a handful of markets where “ad spend is critical”. Notably, the pricing of the ad-supported plan is still under wraps.
According to Netflix, “Our low-cost ad-supported offering will complement our existing plans, which will remain ad-free.” Additionally, the company disclosed that its average revenue per member (ARM) grew at a 5 percent compound annual rate from 2013 to 2021, “so it now makes sense to give consumers the option of a lower-priced option with ads, if they wish it.
Netflix has also given information about its paid password sharing platform. The company has announced testing an “add a home” feature that will charge users if they share their account password with others. This will let anyone in one household use the same account from any device, however, if someone else wants to use the account from an additional household, they will be charged a certain fee.
Netflix will begin testing the feature in select countries starting next month, including Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras.
The upcoming ad-supported plan from Netflix will not include all the content on the platform that previously appeared on BGR India.