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Ads could be coming to your Netflix soon. Here’s what to know

SHARE Ads could be coming to your Netflix soon. Here’s what to know
The Netflix logo on a TV remote.

This Aug. 13, 2020, photo shows a logo for Netflix on a remote control in Portland, Ore.

Jenny Kane, Associated Press

Ads could be coming to Netflix by the end of this year, The New York Times reported.

In a recent note to employees, Netflix executives said the streaming service’s “lower-priced ad-supported tier” subscription could be available by the end of 2022.

The ad-supported payment tier will reportedly be cheaper than Netflix’s other plans, according to The New York Times.

Flashback: The report comes after Netflix announced they would crack down on password sharing.

In a statement from March, Netflix said that password sharing was “impacting our ability to invest in great new TV and films for our members.” The streaming service implemented a fee for sharing passwords with people you don’t live with, but the change is only being implemented in Chile, Costa Rica and Peru for now, the Deseret News reported.

Why is Netflix adding an ad-supported tier?

Netflix is struggling financially as it tries to keep up with its streaming competitors, according to CNN Business.

Netflix’s quarterly report earlier this year noted its “first quarterly subscriber loss” in over a decade, leading to Netflix’s stock dropping significantly, CNN reported.

In response, Netflix CEO Reed Hastings said the business would “figure out (a plan) over the next year or two” to have an ad-supported option, according to Fox Business.