Reed Hastings, co-founder, chairman, and co-chief govt officer of Netflix, arrives for the once a year Allen and Co. Solar Valley media convention in Solar Valley, Idaho, U.S. July 6, 2021.
Brian Losness | Reuters
Netflix may just roll out its lower-price, ad-supported tier as early as this yr, a supply accustomed to the topic instructed CNBC.
Netflix executives instructed workers in a notice they had been running to introduce the tier via the ultimate 3 months of 2022. That may put it on a miles quicker monitor than Netflix in the beginning indicated. Throughout its most up-to-date income convention name, co-CEO Reed Hastings mentioned the corporate was once nonetheless understanding the fashion and an ad-supported choice would not be to be had at the carrier for a yr or two.
However Netflix has struggled with a stagnating subscriber base and a plunging inventory, down greater than 71% yr so far. An ad-supported tier may just assist draw in and retain price-conscious shoppers.
Netflix may be anticipating to start out cracking down on password sharing in that very same time frame.
The corporate mentioned ultimate month it estimates greater than 100 million families globally use a shared password to get right of entry to its content material — 30 million of the ones within the U.S. and Canada. That is contributed to earnings enlargement and subscriber headwinds, it mentioned.
The New York Instances first reported the speeded up timeline for the adjustments Tuesday. A Netflix spokesperson declined to remark.
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