According to recent speculations, Netflix may introduce an ad-supported tier before the end of the year. The New York Times reported on the streamer’s bubbling endeavor.
According to their post, officials have warned staff that the lower-priced membership tier might arrive in the last three months of 2022.
That is far sooner than most people anticipated. For years, rumors of a lower-tier scheme supported by advertising have circulated. However, the volume has increased since the beginning of this year.
With the corporation losing so many customers owing to a variety of issues, it appears that leadership is attempting to alter course as swiftly as possible. However, creating a completely new layer is difficult, and it remains to be seen whether they can meet such a tight deadline.
“Our revenue growth has slowed considerably as our results and forecast below show,” Netflix executives previously told shareholders in a press release. In the letter, these decision-makers then shifted blame for the shortcomings to password-sharing among users.
“Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally. However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds,” they added. “The big COVID boost to streaming obscured the picture until recently. While we work to reaccelerate our revenue growth – through improvements to our service and more effective monetization of multi-household sharing – we’ll be holding our operating margin at around 20%.”
