Netflix may introduce advertising before the end of the year

Advertising may be coming to Netflix sooner than expected.

Netflix has told employees it aims to introduce an ad-supported tier in the last three months of 2022, The New York Times reports.

That's a faster timeline than the company previously indicated, as Netflix co-CEO Reed Hastings said the streamer would explore introducing ads "over the next year or two." Netflix, according to the Times, called its timeline "fast and ambitious" and said it "will require some trade-offs."

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Netflix revealed it was looking into launching an ad-supported tier last month after disclosing that it lost subscribers for the first time in a decade, leading the company's stock to take a hit. For years, Netflix ruled out the possibility of having ads on the platform. But in a reversal, Hastings said "allowing consumers who would like to have a lower price, and are advertising tolerant, get what they want makes a lot of sense."

The advertising would be optional for Netflix subscribers who want to pay less. The company is expected to follow a similar model as Hulu, which in the U.S. costs $6.99 per month with advertising and $12.99 per month without it.

This isn't the only change Netflix is eying, as it's also looking to ask users to pay more to share their accounts with others. According to the Times, the company aims for its password-sharing crackdown to begin in the last three months of this year.