• Staff Writer

Netflix ad-supported plan and password sharing fees coming soon


An internal executive memo informed staff that Netflix is planning to launch a cheaper ad-supported plan and a fee for sharing passwords in the last three months of 2022, The New York Times reported.

Netflix reportedly said in the memo that apart from Apple TV+, its major competitors in the US all offer an ad-supported plan at a lower price while “maintaining a strong brand”.



“For good reason, people want lower-priced options,” the memo said.

Additionally, Netflix noted that although they have over 222 million paid subscribers, estimates suggest that over 100 million individuals access the service using someone else’s account.

“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,” Netflix chief operating officer Greg Peters said on an earnings call.



Peters said they would discuss the password sharing fee over the next year or so.

Netflix launched the option in Chile, Costa Rica, and Peru as part of a limited test.

Netflix co-chief Reed Hastings told investors on the same call that the company would discuss an ad-supported alternative over the next year or two.

However, according to the memo, the ad-supported plan will launch in tandem with plans to charge for sharing — and the company aims to introduce these at the end of 2022.

Netflix’s subscriber numbers declined by 200,000 for the first time last quarter, mainly because it suspended its services in Russia.



Its stock also fell by more than 50% last month, and the company is expecting to lose around 2 million more subscribers.

Netflix hopes that the addition of a cheaper plan and an extra fee for password sharing will support an increase in revenue.



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