Netflix ad-supported subscription tier might launch sooner than expected in 2022
By Mads Lennon
It’s no secret that Netflix is struggling a little right now. The company is tightening its pursestrings and shuffling the way it does business. One of the most significant changes likely being implemented to the platform in the near future is the addition of a cheaper, ad-supported tier.
If you use services like Hulu or Peacock, or even free services like Tubi, then you probably already know what to expect. Even Disney+ and HBO Max are expected to rollout ad-supported tiers in the near future. The addition of these options allow subscribers the option of paying less to access content in exchange for watching ads, just like you would on normal cable television (although usually these options still have less commercials than regular linear TV).
When Netflix made the announcement that it would be embracing advertisement, there wasn’t a specific plan included, nor a date for this change to be implemented by. But according to a new article from Deadline, the change might happen sooner than anticipated, as early as the end of this year.
Ads might arrive on Netflix by the end of 2022
Netflix has released lackluster results twice this year as the service loses subscriber and its stock declines. But Deadline reports that “the marketplace for ad-supported streaming is booming, with the IAB reporting a 57% jump in connected-TV ad spending in 2021 compared with the prior year.”
That, coupled with the pressure Netflix is facing to grow its subscribers against increasing competition from other screeners leads the streamer willing to embrace significant changes that it might never have considered years ago when Netflix was the only top dog on the playing field.
Additional reporting:
"Meanwhile, pressure is mounting on Netflix to keep its subscriber levels growing. At 222 million global subscribers, the company continues to lead the field, but it posted its first loss of customers in 11 years last quarter and has signaled this quarter it could shed as many as 2 million more."
The new timeline would be much faster than the previous forecast of taking one to two years to implement the change. A memo detailing the new, faster outlook was conveyed to employees in a memo per a report from The New York Times, which received the information from unidentified Netflix insiders.
What do you think about Netflix launching an ad-supported plan? Will you subscribe?