The company already raised its prices earlier this year, but it is about to start taking something from customers that is more valuable than money.
According to the New York Times, the streaming giant told employees that an ad-supported subscription plan could be in place by the end of the year. The discounted monthly price isn't known yet, but it would be less expensive than the standard subscription. There is a $9.99/mo tier that does not include HD streaming, so perhaps this would replace it.
It doesn't come as a surprise that they are going to introduce ads. Reed Hastings said the company would look into offering a cheaper subscription option. The ad-supported tier was supposed to debut over the next year or two, but now we know it could arrive this fall. If this option is included, it would put the service on par with other services that have cheaper subscriptions with ad breaks.
The timing of this news isn't a great look forNetflix, which has recently announced a number of anti-consumer policy changes. While other services include it for free, Netflix wants to raise prices for users who share their passwords with other people. The inclusion of a totally optional and cheaper ad-supported version ofNetflix isn't on the same level as that, but the optics of the biggest streaming service suddenly reversing course on ad inclusion aren't great.
In the first quarter of the year, the service lost 200,000 subscribers and it expects to lose two million more next quarter. It happens when you let go of shows like Frasier and King of the Hill.
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