In the future, there could be cheaper ad-supported plans offered by the company. In the company's most recent earnings call, co-CEO Reed Hastings revealed that the streaming giant is currently working on the offering and that it will be finalized over the next year or two.
It could make sense for the company. In the first quarter of 2022, the service lost 200,000 subscribers due to stiff competition, inability to expand in some territories, and account sharing. 222 million households are paying for the service, but more than 100 million are sharing it.
In March, the company started testing a feature in three countries that would allow subscribers to add two subs for $3 a month. It may be a fraction of what a full membership costs, but at least they are getting something.
Hastings said during the call that the ad-supported memberships will be added as tiers and members who don't mind paying full subscription fees don't have to. He said that they had no doubt that it worked. The executive said that the company will not track user data to match ads like some of its competitors do.
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