Netflix is preparing to bring in an advertising-supported subscription plan as soon as the end of 2022.
The plan was first mooted last month when the streamer reported the loss of 200,000 customers in the first quarter and the prospect of losing 2 million more in Q2 – a move that spooked investors.
A memo, seen by the New York Times, also said Netflix would begin plans to crackdown on the subscription scroungers who rely on friends and relatives for their subscription. Speaking during April’s investor call CEO Reed Hastings said the company was “now working super-hard” to monetise sharing.
No detail has been given on exactly how much the new tier will cost or where advertisements will be inserted, but the mixed subscription plan has been a success in the United States for HBO Max and Disney+.