Netflix: Sharing fees and advertising fees may be in decline

The idea for a Netflix plan with advertising and additional charges for shared accounts is nothing new. Now both could have come sooner than that New York Times (paywall) informed of. The newsletter refers to an internal message from Netflix management to employees.

In the context of the contest the advertising fee should start first

A few weeks ago it became known that Netflix was considering blocking unauthorized account sharing and adding additional charges for users to existing tariffs. Soon after, in late April, Netflix was considering introducing an ad-financed tariff given the disappointing quarterly figures. The company named a start in one to two years as a possible date.

Now, however, things should move quickly, as the New York Times reported, citing a leaked internal note. Accordingly, the new subscription model is already “in the last three months of the current year“Start. That’s it”fast and ambitious, and it will require some compromises‘ The NYT quoted the letter as saying. In addition, the company refers to the competition. According to the NYT, the company declined to comment publicly.

HBO and Hulu have been able to maintain strong brands while offering ad-supported service. Every major streaming company has or has announced an ad-supported service except Apple. For good reason, people want low-cost options.

Internal letter to Netflix employees

How such a partially ad-financed tariff might be implemented is currently open. At a monthly cost less than the basic tariff, both the advertising banner on the home page and the classic ad break when streaming movies or series can be imagined. The existing tariff should remain unaffected.

Beneficiaries’ fees should also come first

However, in a note to employees, Netflix executives also said that the ad-supported plan will be rolled out in conjunction with account-sharing fees. This means that there is the possibility of connecting sub-accounts to a standard or premium tariff. These accounts, intended for users from other households, have their own profile, their own personal recommendations and their own login data. A maximum of two sub-accounts should be possible per full account.

How high the extra cost will be is still in the stars. It is also unknown to what extent all this will happen with measures against earlier common account sharing.

After poor quarterly figures and an expected drop in subscribers, Netflix expects to be able to grow users and revenue again with the introduction of cheaper, ad-financed tariffs and sub-account models.