Reed Hastings, Netflix co-founder, president and co-chief executive officer, arrives for the Allen and Co. Sun Valley annual press conference in Sun Valley, Idaho, USA, July 6, 2021.
Brian Losness | Reuters
Netflix it could launch its lowest level, supported by advertising as early as this year, a source familiar with the matter told CNBC.
Netflix executives told employees in a statement that they were working to introduce the level by the last three months of 2022. That would put it on a much faster path than Netflix originally indicated. During his most recent earnings conference call, co-CEO Reed Hastings said the company was still trying to figure out the model and an ad-supported option. it would not be available on the service for a year or two.
But Netflix has struggled with a stagnant subscriber base and a stock in free fall, down more than 71% from the beginning of the year. An ad-supported tier could help attract and retain price-conscious consumers.
Netflix is also expecting to start crack down on sharing passwords in that same period of time.
The company said last month it estimates more 100 million families in the world use a shared password to access its contents, 30 million of those in the United States and Canada. This contributed to revenue growth and subscriber headwinds, she said.
The New York Times reported this for the first time the accelerated timeline for changes on Tuesday. A Netflix spokesperson declined to comment.