Netflix adverts and a ban on password sharing are coming this year

Netflix on iPhone X
Netflix on iPhone X (Image credit: iMore)

What you need to know

  • Netflix is going to start cracking down on password sharing this year.
  • Executives are aiming to introduce lower-price tiers with adverts in the last three months of 2022.
  • A ban on sharing your password is set to take effect around the same time.

Netflix is aiming to introduce adverts to its platform and ban password sharing by the end of the year, according to the new report.

The NYT reports:

In the note, Netflix executives said that they were aiming to introduce the ad tier in the final three months of the year, according to two people who shared details of the communication, speaking on condition of anonymity to describe internal company discussions. The note also said that they were planning to begin cracking down on password sharing among its subscriber base around the same time, the people said.

As the report notes that is a more accelerated timeline than previously indicated. Netflix is in some bother after announcing last quarter that it lost subscribers for the first time in more than 10 years, with more expected in the next quarter.

As a result, Netflix shares plummeted, with the company announcing some drastic plans to fix its financial woes. Alongside canceling a swathe of content, Netflix is going to introduce cheaper pricing tiers that will be supplemented by adverts for users who don't mind sitting through commercials while paying a bit less.

The other measure is a ban on password sharing. Netflix estimates that it has around 100 million users who are sharing a password with another paying household, essentially getting a free ride for the service. Netflix has reiterated that users are not meant to share their passwords with anyone outside of their household and plans to try and put a stop to the practice in the next few months.

The platform is one of the best iPhone apps for streaming original content on devices like the iPhone 13, iPad, and MacBook. While more ways to pay for the service and cheaper options might be a welcome advent for some, its password-sharing policy is bound to prove unpopular with users.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design. Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9