Netflix Will Introduce Ads To Its Streaming Service

Netflix to bring ads to their streaming service

According to a recent rumor, Netflix might introduce adverts to its streaming network as soon as this year.

As shown in the New York Times, staff were supposedly informed about a lower-cost tier sponsored by advertising via an internal memo.

The new tier will launch in the final three months of 2022, about the same time that Netflix wants to start tightening down on password sharing.

The ad-supported tier would be “in tandem with our broader plans to charge for sharing,” according to executives.

Netflix previously remarked that an estimated 100 million users watch Netflix using other people’s accounts, which it claimed was stifling its development.

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Netflix and chill

“If you’ve got a sister that’s living in a different city, you want to share Netflix with her, that’s great,” said Greg Peters, Netflix’s chief operations and product officer.

“We’re not trying to shut down that sharing. But we’re going to ask you to pay a bit more to be able to share with her so she gets the benefit and the value of the service but we also get the value of the revenue associated with that viewing.”

Reed Hastings, Netflix CEO, told investors that the business will “figure [an ad-supported platform] out over the next year or two,” but development appears to be moving faster than projected.

Netflix stated that it lost 200,000 customers in the first quarter of 2022 and anticipates losing another two million in the second quarter.

Netflix, on the other hand, had projected to attract an extra 25 million members in the first quarter, but the shocking decline in subscribers left it with 221.6 million consumers worldwide.

The streaming provider refused to speak further.

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