Netflix is moving quickly on the release of its new ad-supported subscription service, which it recently revealed will be supported by tech from Microsoft. In today's earnings report, Netflix said that it is targeting "the early part of 2023" for the tier's release.
The tier, which was announced earlier this year, will offer a lower subscription price in exchange for viewing advertisements. The news comes as Netflix confirms that it lost nearly 1 million subscriptions despite the success of Stranger Things Season 4, which has been viewed for more than 1.3 billion hours since launch.
According to Netflix, the rollout will be gradual, and the tier will "likely start in a handful of markets where advertising spend is significant."
"Like most of our new initiatives, our intention is to roll it out, listen and learn, and iterate quickly to improve the offering," Netflix says in its letter to shareholders. "So, our advertising business in a few years will likely look quite different than what it looks like on day one."
Over the long run, Netflix is hopeful that the new tier will "enable substantial incremental membership (through lower prices) and profit growth (through ad services)." Netflix has not yet revealed the new price structure.
In the meantime, Netflix is also cracking down on password sharing while testing out a new model that will enable subscribers to buy additional "homes." It's all part of an attempt to appease shareholders amid declining subscriptions, which in turn has resulted in layoffs and other cutbacks.
Netflix has been buoyed by the success of Stranger Things 4, which has topped streaming charts and continues to draw significant interset. However, with Stranger Things 5 not expected to release until late 2023 or early 2024, Netflix will have to continue to find other ways to rebuild its subscription count.
Kat Bailey is a Senior News Editor at IGN as well as co-host of Nintendo Voice Chat. Have a tip? Send her a DM at @the_katbot.