It’s been less than a month since Netflix announced slowing revenue growth and its first subscriber drop in more than a decade, and now The New York Times reports that it is accelerating planning for initiatives to change those things.
Netflix was already openly talking about getting people who share their account logins to pay more, and when the report came out, co-CEO Reed Hastings changed his tune on ad-supported streaming and said he’d try to figure it out. in the “next year or two.” According to the TimeA recent message to employees said executives are now aiming to introduce the ad tier sometime in the last three months of 2022, with a crackdown on sharing passwords in the same window.
Disney Plus announced its own intentions for ad-supported streaming in March, and Catie Keck wrote about it, asking how long it would be before others followed suit. The answer seems to be ‘not long at all’ as the… Time said the note specifically states that all of Netflix’s streaming competitors, with the exception of Apple TV Plus, offer or have announced ad-supported streaming levels.
When Netflix announced its new focus on password sharing, LightShed Partners analyst Richard Greenfield said: The edge that this could be the way to close a gap of 10 to 20 million additional US customers.
All these changes are also coming, as Netflix is now more expensive than ever. The most recent price hike raised the monthly price of its standard HD streaming plan with two simultaneous streams by $1.50 to $15.49 per month, while the premium tier with 4K and four simultaneous streams now costs $19.99 in the US.