Netflix is planning to introduce a lower priced ad-supported tier in early 2023 and a crackdown on password sharing sometime in 2023. Here is how 'add a home' is expected to work.
More than 100 million Netflix households are sharing passwords, according to the company's estimates. That is why Netflix is currently testing various methods to curb the practice.
- "We’re in the early stages of working to monetize the 100m+ households that are currently enjoying, but not directly paying for, Netflix. We know this will be a change for our members. As such, we have launched two different approaches in Latin America to learn more. Our goal is to find an easy-to-use paid sharing offering that we believe works for our members and our business that we can roll out in 2023," the company said in its earnings report.
Netflix's latest initiative is 'add a home' which is currently being tested in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras. Here is how it works.
FAQ: 'Add a home' to Netflix
One home per account: Each Netflix account - whatever your plan - will include one home where you can enjoy Netflix on any of your devices.
Buy additional homes: To use your Netflix account in additional homes, we will ask you to pay an extra (219 Pesos per month per home in Argentina / $2.99 per month per home in the Dominican Republic / $2.99 per month per home in Honduras / $2.99 per month per home in El Salvador / $2.99 per month per home in Guatemala). Members on the Basic plan can add one extra home, Standard up to two extra, and Premium up to three extra.
Travel included: You can watch while outside the home on your tablet, laptop or mobile.
New manage homes feature: You will soon be able to control where your account is being used - and remove homes at any time - from your account settings page. |
FlatpanelsHDAd-supported tier
Netflix lost 970,000 subscribers in Q2 2022 and the company has identified ads as a growth opportunity.
In its earnings report, Netflix confirmed that it is planning to launch a cheaper ad-supported tier in early 2023. The existing ad-free plans will remain available but the finer details are still under wraps.
- "Our lower priced advertising-supported offering will complement our existing plans, which will remain ad-free," wrote Netflix (emphasis Netflix's). "We recently announced Microsoft as our technology and sales partner and we’re targeting to launch this tier around the early part of 2023."
At this time, Netflix can offer "the vast majority" of its content library with ads, according to Netflix co-CEO Ted Sarandos. He said that Netflix is in conversations with partner studios to clear additional content but it does not expect all titles to be available.
