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Netflix is planning to launch a cheaper, ad-supported streaming tier in early 2023, according to the company's shareholder letter that accompanied their quarterly earnings (via Deadline).
The streamer said a "lower priced advertising-supported offering will complement our existing plans, which will remain ad-free." The new tier will be rolled out in selected markets first, but the company didn't specify which countries would get the service first.
"We’ll likely start in a handful of markets where advertising spend is significant. Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering. So, our advertising business in a few years will likely look quite different than what it looks like on day one," the company added.
Back in March, the streamer said it had "no plans" to introduce adverts to the platform, before announcing plans to introduce adverts the following month. The streamer lost nearly one million subscribers over the last three months, and this cheaper tier is certainly a ploy to lure customers back.
Netflix is also trying to cut down on account sharing, with a new feature being trialed earlier this year where subscribers received a prompt that allowed them to add viewers who don't live in the account holder's household to their subscription package at a discounted price. There was also a recent price hike for subscribers, with the streamer's basic tier jumping to $9.99 per month, up from $8.99/month previously.
Looking for more streaming inspiration? Check out our picks of the best Netflix movies and the best Netflix shows to add to your watch list.
