Netflix Inc (NASDAQ:NFLX) is to launch a cheaper, ad-supported, video-on-demand service months ahead of schedule as it also steps efforts to crack down on password sharing.
Originally with a timeline of a "year or two" Netflix has now told employees the ad-supported tier would launch in this year's fourth quarter, reports the New York Times.
Netflix's biggest competitors, including Hulu, HBO Max, NBCUniversal's Peacock, and Paramount+, already offer cheaper, ad-supported plans.
Disney has also announced plans to launch an ad-supported version of Disney+ in the US in late 2022.
Netflix is also expected to step up its efforts to convert password-sharing users into paying subscribers around the same time, with one analyst stating the company could generate an additional US$1.6bn annually if successful.
An estimated 100mln households currently use shared passwords to access the service and Netflix has launched a test in Chile, Costa Rica and Peru that lets subscribers pay an additional fee to allow others outside their household access the service.