In September 2020, Netflix CEO Reed Hastings vowed that the streaming service would stay ad-free. Then Insatiable-gate happened, and everything changed. Amidst rising subscription costs, password crackdowns, and employee walkouts, Netflix may soon offer an ad-supported subscription plan — much sooner, in fact, than anyone expected.
The New York Times reports that “Netflix could introduce its lower-priced ad-supported tier by the end of the year, a more accelerated timeline than originally indicated, the company told employees in a recent note… Netflix executives said that they were aiming to introduce the ad tier in the final three months of the year.” The letter also revealed that the extra cost for password sharing could go into effect around the same time.
Netflix currently offers a variety of payment tiers to access its streaming service; its most popular plan costs $15.49 a month. The new ad-supported tier will cost less. Other streaming services have similar plans. HBO Max, for instance, offers a commercial-free service for $15 a month, and charges $10 a month for the service with advertising.
“Every major streaming company excluding Apple has or has announced an ad-supported service,” the note reads. “For good reason, people want lower-priced options.” They also want more The Baby-Sitters Club and less cake-focused game shows, but I guess it’s too late for that.
(Via the New York Times)
