Thinking about a Netflix plan with ads and additional fees for shared accounts isn't new. Now both could come faster, as the New York Times (Paywall) reports. The newspaper refers to an internal message from the Netflix management to the employees.
Advertising tariff should start earlier with reference to the competition
A few weeks ago it became known that Netflix was considering preventing unauthorized account sharing and adding an additional fee for users to the existing tariffs. Shortly thereafter, at the end of April, Netflix was considering introducing an advertising-financed tariff in view of disappointing quarterly figures. The company named a start in one to two years as a possible date.
Now, however, things should go faster, as the New York Times reports, citing a leaked internal note. Accordingly, the new subscription model should start “in the last three months of the current year”. It's “quick and ambitious, and it will require some compromises,” the NYT quoted the letter as saying. In addition, the company refers to the competition. The company declined to comment publicly, according to the NYT.
HBO and Hulu have been able to maintain strong brands while offering an ad-supported service. Every major streaming company excluding Apple has or has announced an ad-supported service. For good reason, people want lower-priced options.
Internal letter to Netfllix' Employees
How exactly such a partially advertising-financed tariff could be implemented remains open for the time being. At monthly costs below the basic tariff, both advertising banners on the home page and classic advertising breaks while streaming films or series are conceivable. The existing tariffs should remain unaffected.
The fees for beneficiaries should also come earlier
However, in the note to employees, Netflix executives also said that the ad-supported plan would be rolled out in combination with account-sharing fees. What is meant by this is the possibility of adding sub-accounts to a standard or premium tariff. These accounts intended for users from other households have their own profile, their own personalized recommendations and their own login data. Up to two sub-accounts should be possible per full account.
How high the additional costs will be is still in the stars. It also remains unknown to what extent all of this will be accompanied by measures against the previously common account sharing.
After poor quarterly figures and the expected loss of customers, Netflix is hoping for a cheaper, advertising-financed tariff and the Introduction of the sub-account model to be able to increase the number of users and income again.