After a decade of resisting introducing an ad-supported tier, it appears that Netflix is wasting no time in moving forward with plans originally announced by co-CEO Reed Hastings last month to bring the lower-priced subscription option to consumers as quickly as possible.

This is ahead of the 12-24 month plan outlined during the company’s Q1 Earnings Call.

According to the New York Times, the streaming giant told employees in a recent memo that the company was working to bring the ad-supported option to the platform by the end of 2022. The paper of record’s sources also indicate that Netflix will begin rolling out further measures to curb password sharing at the same time.

The note sent to Netflix employees admitted that the move to include advertising on the platform was fast, especially given that the company has no existing operations to sell or implement ads amongst its content.

“Yes, it’s fast and ambitious and it will require some trade-offs,” the note said. “Every major streaming company excluding Apple has or has announced an ad-supported service. For good reason, people want lower-priced options.”

While there will need to be substantial technical, organizational, and logistical moves made behind the scenes at Netflix in order to bring the ad-supported tier live this calendar year, perhaps most importantly for customers, one of the major questions will be how ads are incorporated in the programming.

For TV series licensed from broadcast and basic cable channels, inserting ads into the traditional breaks should be relatively easy, but for Netflix’s original content, no such natural breaks occur, since the shows were written and shot with no concern for commercials. Will that mean that ads will be artificially inserted at random spots during the episodes, or will they be frontloaded to all happen before the content begins?

Only time will tell, but these are important questions that the streamer will need to get right in order to make the new user experience one that cost-conscious customers are willing to pay for.

Sign Up

netflix.com

Netflix

Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

…

The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.

Sign Up

$8.99+ / month

netflix.com