Netflix Reveals New Ad-Supported Subscription Tier

Netflix is planning to release its new ad-supported subscription service, which the subscription service will be supported by Microsoft. Netflix has mentioned that the company now is targeting to release the tier on the early part of 2023.

The tier will offer a lower subscription price in exchange for viewing advertisements. According to Netflix, the rollout will be gradual, and the tier will likely start in a handful of markets where advertising spending is significant.

Netflix hopes that the new tier is able to enable substantial incremental membership which through lower prices and profit growth through advertisement services. Yet, Netflix has not yet revealed the new price structure.

At the same time, Netflix is also suppressing password sharing while testing out a new model that will enable subscribers to buy additional “homes”. The purpose of cracking down on password sharing is to appease shareholders amid declining subscriptions, which in turn has resulted in retrenchments and other cutbacks.

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