Netflix to introduce discounted subscription with ads from 2023

Netflix will introduce an ad-supported tier. (Netflix)

Netflix hopes to recover its subscriber numbers by launching a new low-cost, ad-supported tier from 2023.

The streaming service has seen its customer base drop since the start of 2022, with subscriber numbers beginning to decline in the first quarter, followed by a reported loss of 970,000 subscribers worldwide in the second quarter.

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This has prompted the streaming giant to press ahead with plans to introduce a new, cheaper subscription that will include ads, which should be available for purchase from early 2023.

Customers can always opt for the more expensive, ad-free version, but it’s not yet clear if some content will be reserved exclusively for the more expensive subscription or if the only difference will be that a plan includes ads while that the other does not. t.

    In this photo a hand holding a padlock and in the background the Netflix logo on the computer screen.Online data protection - breach concept.  Internet privacy issues.  (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

Netflix is ​​also cracking down on password sharing. (LightRocket via Getty Images)

Netflix has also made efforts to crack down on password sharing in all of its markets around the world, which could potentially see a surge in subscriptions if people can’t use their friends’ logins.

New anti-password-sharing measures are being tested in Latin America to prevent subscribers from sharing with other households, which Netflix’s terms prohibit – but which have so far not been enforced. .

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In the trial, users have the option of paying extra to be able to create sub-accounts for other households, or other households sharing the password can sign up for their own separate account.

STRANGER THINGS.  (L to R) Priah Ferguson as Erica Sinclair, Joseph Quinn as Eddie Munson and Joe Keery as Steve Harrington in STRANGER THINGS.  cr.  Courtesy of Netflix © 2022

It is unclear if all content will be available on the ad-supported tier. (Netflix)

According to Netflix bosses, the widespread sharing of passwords between households is limiting the streaming service’s ability to fund new content.

There have also recently been price hikes in existing subscriptions in an attempt to cover the shortfall created by subscribers deserting the service.

It is believed that recent additions to the congested streaming market, including the launch of Peacock and Paramount+ in the UK and the imminent arrival of ITVX, combined with the cost of living crisis and the end of lockdown, contributed to Netflix’s struggles with subscriber numbers.

Watch: Netflix loses nearly a million subscribers as cost of living crisis takes its toll

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