The upcoming ad-supported tier that's in the works won't allow subscribers to download TV shows or movies. The restriction was found in the code of the app for the iPad and iPod touch.
If you restrict the ability to download for offline viewing to the more expensive tiers of the service, you will be able to differentiate between existing plans and the new ad supported plan.
Ted Sarandos, co-CEO of Netflix, said in June that the company is planning for a more affordable tier for those who don't mind ads and those who don't want to pay for an ad-free service. "We've left a big customer segment off the table, which is people who say that they don't mind advertising because it's too expensive for them," he said. We're adding an ad tier, but we're not adding ads to the service right now. We're going to add an ad tier for people who want a lower price and watch ads.
According to the report, customers won't be able to skip ads or access controls while ads are playing, and that some content will only be ad-free. There could be updates when the ad-supported tier is launched.
There is no word on what the price of the ad-supported service will be. The Basic plan is now priced at $9.99 and it has 480p streaming. The most expensive plan is the one that only offers 4K. The ad-supported tier will likely offer the same streaming quality as the Basic plan, but will be more expensive.
The company has been losing customers and revenue. The company lost subscribers for the first time in a decade in the first quarter of 2022.
Adding a cheaper plan and cracking down on account sharing are two things that will happen. According to the company, 222 million paying households are sharing with another 100 million households that are not being monetized, and the company plans to implement more effective monetization of multi-household sharing in the future. Fees for multi-household account sharing are currently being tested in some countries and could expand in the future.
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