Netflix’s upcoming ad-supported plan won’t include all of the content on the platform

Netflix has confirmed to introduce a new cheaper ad-supported plan for the first time ever. During the latest Q2 2022 earnings interview video, a Netflix executive announced that this subscription plan will not offer all of the content on the platform. The streaming platform aims to roll out this plan “around the early part of 2023.”

Netflix ad-supported tier

As per the official statement, “Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier. There are some things that don’t — that we’re in a conversation about with the studios — but if we launched the product today, the members in the ad tier would have a great experience. We will clear some additional content, but certainly not all of it, but we don’t think it’s a material holdback to the business.”

This ad-supported tier will be rolled out in a handful of markets where “advertising spend is significant”. Notably, the pricing of the ad-supported plan is still under wraps.

According to Netflix, “Our lower-priced advertising-supported offering will complement our existing plans, which will remain ad-free.” Additionally, the company revealed that its average revenue per member (ARM) has grown at a 5 percent compound annual rate from 2013 to 2021, “so it makes sense now to give consumers a choice for a lower-priced option with ads, if they desire it.

Netflix has also given out details on its paid password-sharing platform. The company has announced to test an “Add a home” feature that will charge users if they share their account password with others. It will let anyone in one home use the same account from any device, however, if someone else wants to access the account from an additional home, they will be charged a certain fee.

Netflix will begin testing this feature in select countries including Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras starting next month.

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