NETFLIX PLANS TO INTRODUCE ADS AND PASSWORD SHARING FEES
NETFLIX PLANS TO INTRODUCE ADS AND PASSWORD SHARING FEES
The note also stated that although the service has over 222 million subscribers, 100 million of them access the app through someone else’s account.
JOHANNESBURG – Netflix, in a bid to curb competition and increase revenue, announced a plan to set in motion ad-inclusive options at a cheaper price in addition to password sharing fees.
The on-demand streaming platform’s executive memo informed employees that it plans to initiate the plan before the end of 2022 while password sharing will slightly be initiated over the next year or two, according to New York Times.
The note also stated that although the service has over 222 million subscribers, 100 million of them access the app through someone else’s account.
Netflix’s chief operating officer, Greg Peters, said: “So, if you’ve got a sister, 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.”
The memo said the ad-supported plan would launch, along with plans to charge for sharing.
Netflix has already launched the option in Chile, Costa Rica, and Peru as part of a limited experiment.
The streaming giant, for the first time in 10 years, suffered a 35% drop in stock price last month and lost 200,000 subscribers alluding to significant financial challenges.
The company said the plunge was due to the suspension of Russian access in response to the ongoing Russia-Ukraine conflict.
