Netflix to switch to Advertising Subscriptions
Netflix could launch its lower-priced ad-supported tier by the end of the year, a faster timeline than originally stated, the company told employees in a recent note in the last three months of the year, two people who shared details of the communication on condition of anonymity said they had to describe internal company discussions. The note also said Netflix will begin cracking down on password-sharing with its subscriber base around the same time, People With Ads said, after years of publicly declaring that commercials would never be seen on the streaming platform.
‘Add Home’ feature was introduced to limit password sharing. If users share the account’s password outside of their home, they will have to pay a separate fee for it. Netflix will begin testing the Add-a-Home option in several countries next month, including Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras. Users will be able to control the account and be able to add two more additional houses at a time. Netflix will also allow users in these countries to control where their accounts are used. Also, users have the option to remove Homes from the settings page at any time.
Netflix has an advertising partnership with Microsoft. In the coming days, people will be able to watch Netflix shows from the popular OTT platform at a very low cost. The reason for this is Netflix’s advertising partnership with Microsoft. A steadily shrinking user base and disappointing Q1 performance have forced Netflix to switch to advertising subscriptions
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