Netflix tells employees that ads could arrive by the end of 2022.

Netflix tells employees that ads could arrive by the end of 2022.

The company told employees in a recent note that Netflix could introduce its low-cost ad-supported tires by the end of the year, which is actually a faster timeline than indicated.

In a note, Netflix executives said they plan to introduce ad rankings in the last three months of the year, with two people who spoke on condition of anonymity to describe the company’s internal conversations. Shared details of People said the note also states that Netflix plans to launch a crackdown on password sharing between its subscriber base at the same time.

Last month, Netflix stunned the media industry and Madison Avenue when it revealed that it would begin offering a low-cost subscription containing ads, after years of publicly saying that ads never Will not be viewed on streaming platforms.

But Netflix faces significant business challenges. Announcing its first-quarter earnings last month, Netflix said it lost 200,000 subscribers in the first three months of the year – the first time in a decade – and lost another 2 million in the coming months. Hope so Netflix’s share price has plummeted since the subscriber’s announcement, clearing nearly ڈالر 70 billion in the company’s market capitalization.

Red Hastings, co-chief executive of Netflix, told investors that the company would consider the possibility of introducing an ad-supported platform and would “try to find out in the next year or two.”

A recent note for staff indicates that the timeline has accelerated.

“Yes, it is fast and ambitious and it will require some trade deals,” he said.

A Netflix spokesman declined to comment.

Netflix offers several payments for access to streaming. Its most popular plan costs $ 15.49 a month. Advertising-supported new levels will reduce the cost. Other streaming services have similar plans. HBO Max, for example, offers a commercial free service for 15 a month, and charges $ 10 a month for advertising services.

In fact, in a note to employees, Netflix executives invited their competitors, saying that HBO and Hulu have “managed to maintain strong brands by offering ad-supported service.”

“Every major streaming company except Apple has announced or has announced an ad-supported service,” the note said. “For good reason, people want low-cost options.”

Netflix has discussed its interest in building an external advertising infrastructure, including with a company called The Trade Desk, which helps advertisers place ads on various Internet-powered platforms. One person spoke on condition of anonymity. To explain them. The source said that the trade desk considers David Wells, a former chief financial officer of Netflix, a board member and has been in touch with Netflix for years, but recently Netflix publicly said that After saying that it will create an ad. Levels

Last month, Netflix also announced that it intended to start charging higher prices from subscribers who shared their accounts with others.

Greg Peters, Netflix’s chief operating officer, said on the company’s earnings call, “So if you have a sister, let’s say she lives in another city – you want to share Netflix with her, that’s a lot. is good.” “We’re not trying to stop this sharing, but we’ll ask you to pay a little more to be able to share it.”

Mr Peters said the company would go through “a year or more of repetition” on password sharing before it could come up with a plan.

In a note to employees, Netflix executives said the ad-supported level would be introduced “in conjunction with our broader plans to charge for sharing.”

Tiffany Hsu Cooperation reporting.

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