Ever since its initial launch back in August 1997, Netflix has been widely known for its entertaining platform that consists of no commercials, ads, or any type of streaming interruption. Without these specific pauses, the popular service has managed to propel itself ahead of many competing platforms over the years such as Hulu, Amazon Prime, HBO, and plenty others. However, the Scotts Valley, California-based company has recently made the announcement that they are currently forming a plan to implement ads anytime within the final three months of 2022.
Netflix originally confirmed the rumors this past Tuesday, May 10 through a confidential memo that was sent out to all of the company’s employees. “Every major streaming company excluding Apple has or has announced an ad-supported service… For good reason, people want lower-priced options,” a portion of the note stated. The memo also contained information on how the corporation is going to begin giving more focus on password sharing with subscribers and non-subscribers.
Chief operating officer for Netflix, Greg Peters, gave a more elaborate explanation of what exactly the streaming service is attempting to accomplish: “So if you have a sister, let’s say, that is living in a different city – you want to share Netflix with her, that is great,” Peters stated. “We are not trying to shut down that sharing, but we are going to ask you to pay a bit more to be able to share with her.” Due to the small price increase, Netflix unexpectedly lost approximately 200,000 subscribers within the first three months of the year. Now, with their newest addition to the service, unavoidable ads, the corporation can only hope that this will not cause a similar outcome to their previous adjustment.