The considerations for a Netflix plan with advertising and additional costs for shared accounts are not new. Now both could arrive faster, as the New York Times (Paywall) reports. The newspaper refers to an internal message from Netflix management to employees.
The advertising rate should start first with reference to the contest
A few weeks ago it became known that Netflix was considering preventing unauthorized account sharing and adding an additional cost for users to existing rates. Shortly thereafter, in late April, Netflix was considering introducing an ad-funded tariff ahead of disappointing quarterly figures. The company has indicated a start in a year or two as a possible date.
Now, though, things should go faster, the New York Times reports, citing a leaked inside note. Consequently, the new subscription model should already “in the last three months of the current year“start. This is”fast and ambitious, and will require some compromises‘the NYT quoted the letter as saying. Furthermore, 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. All major streaming companies, excluding Apple, have or have announced an ad-supported service. For good reason, people want low-priced options.
Internal letter to Netflix staff
How exactly such a partially advertising-funded rate might be applied remains open for the time being. At monthly costs lower than the basic rate, both the advertising banners on the home page and the classic advertising breaks during the streaming of films or television series are conceivable. Existing tariffs should remain unchanged.
Fees for beneficiaries should also come first
However, in the employee note, Netflix executives also said the ad-supported plan would be implemented in conjunction with account sharing fees. What is meant by this is the ability to add sub-accounts at a standard or premium rate. These accounts intended for users of other families have their own profile, their own personalized recommendations and their own login details. Up to two sub accounts should be possible per full account.
How high the additional costs will be is still in the stars. Furthermore, it is unknown to what extent this will be accompanied by measures against previously common account sharing.
After poor quarterly data and an expected decline in customers, Netflix hopes to be able to increase user numbers and revenue again with a cheaper ad-funded rate and the introduction of the sub-account model.