The Morning After: Netflix plans cheaper, ad-supported subscription tiers

It's lost subscribers.

NurPhoto via Getty Images

Netflix might offer cheaper, ad-supported plans in the coming years. In the company's most recent earnings call, co-CEO Reed Hastings said the company is working on the offering, and it’ll finalize details for those plans "over the next year or two."

The service lost around 200,000 subscribers in the first quarter of 2022, a development it blamed on stiffer competition, inability to expand in some territories due to technological limitations and pesky account sharing. It also lost 700,000 subscribers in early March after its decision to suspend service in Russia.

To tackle account sharing, Netflix has tested a feature in Chile, Costa Rica and Peru that allowed subscribers to add two "sub-members," who'll get their own log-ins and profiles, for $3 — much less than the typical subscription cost. Netflix executives noted on its earning call that this model could expand to other countries. We’ve put our account-sharing parents and children on notice.

— Mat Smith

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