We’ve got bad news for Netflix users who enjoy an ad-free experience: The company recently announced that they’ll soon be incorporating commercials into their platform—and they’re not going to let you get away with sharing passwords for much longer, either. Say it ain’t so!
Luckily, not all users will be subjected to these streaming interruptions. Netflix is simply introducing a lower-priced tier that will be supported by ads, as they announced last month. This tier was originally set to be rolled out later down the line (“in a year or two,” the company’s co-chief executive had previously stated). However, a recent note executives wrote to employees said that it will be implemented within the final three months of 2022, the New York Times reports. So enjoy your ad-free viewing while you can!
1. Netflix may introduce a lower-priced version of its streaming service that will include advertisements.
Co-CEO Reed Hastings says the move is aimed at boosting its subscriber base, noting that it “makes a lot of sense” to offer people a cheaper option. pic.twitter.com/tgU96twK8I
— BFM News (@NewsBFM) April 20, 2022
This is a first for Netflix; unlike many of their counterparts, the company has never had advertisements—they had even previously stated that they never would. This decision to switch gears is likely due in part to the fact that the streaming company has been losing subscribers—and, in turn, a lot of money. In the first three months of the year alone, Netflix’s subscribers dropped by a whopping 200,000. It’s no wonder they want to make some changes—even if that does mean disappointing loyal subscribers by introducing ads.
Netflix certainly won’t be the first streaming platform to introduce a more affordable, ad-supported tier. In fact, they’re later to the game than most, as Hulu and HBO Max already offer similar plans. We have to commend them for holding out for so long!
This topic was addressed in the company’s note to employees: “Every major streaming company excluding Apple has or has announced an ad-supported service,” it stated. “For good reason, people want lower-priced options.”
But it’s clear that people also want ad-free options. In fact, research shows that many subscribers would rather give up Netflix completely than have to watch ads.
Netflix users would rather cancel subscriptions than watch ads https://t.co/gYk1ujNAuF
— Daily Mail U.K. (@DailyMailUK) May 11, 2022
In addition to outlining the plan for this new tier, Netflix’s note to employees stated that the company intends to start cracking down on password-sharing across multiple households. Yikes!
If you share a Netflix account with someone in another city, you may be affected by this new policy. However, you don’t have to say goodbye to your bingeing habits altogether—you may just have to start paying a higher price.
“So if you’ve got a sister, let’s say, that’s living in a different city—you want to share Netflix with her, that’s great. 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,” said Greg Peter’s, chief operating officer, in the company’s earnings call.
The company believes the issue of password sharing is part of the reason they’ve lost money, but the public doesn’t buy it.
“Netflix gonna blame us for sharing passwords instead of themselves for increasing prices to justify making a bunch of sh–ty movies and shows that literally nobody asked for,” one person ranted on Twitter.
“The Netflix CEO is an incompetent fool,” another wrote. “Everyone has a negative perception of the Netflix brand and with every new change (ads, no password sharing, raising prices) + layoffs is just getting worse. And no amount of stranger things is gonna save them from their downfall.”
Regardless of how users on Twitter feel though, it seems that Netflix has made their final decisions. For better or worse, it’s clear that there are many changes to come for the platform. We just hope it doesn’t throw our bingeing schedule off too much.
