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It's official, Netflix will be adding ads to its streaming platform.
This is after Netflix announced it lost 200,000 customers in the first quarter of this year, according to The Sydney Morning Herald.
In addition, the streaming platform projected that it will lose another two million customers in the current quarter.
Netflix plans on clamping down on Netflix account password sharing that has allowed many to stream on their platform for free.
The platform estimates that about 100 million households around the world have been streaming for free, reported ABC News.
Netflix co-founder and CEO Reed Hastings said that they need to find a way to get this group of consumers to pay.
Hastings said, in a call with investors, that he was opposed to introducing advertising on the platform before, according to USA TODAY.
But to ensure that more customers consume (by paying) for their service, he's introducing an ad-supported option on the platform for those who are tolerant of advertisements and want to pay for Netflix at a lower price.
This ad-supported plan is still in the works and may only come into effect in a year or two.
What's going to change?
So far Netflix has not announced how the plans or its prices will be changed once an ad-supported option is available.
But to prevent password sharing, the platform has experimented with "password sharing" costs in three countries—Chile, Costa Rica, and Peru.
One of the new features is an "Add an Extra Member" for those on Standard and Premium plans.
This will enable users to add sub-accounts for up to two people they don't live with. Each sub-account comes with its own profile, login password, and personalised recommendations.
Another feature is called "Transfer Profile to a New Account".
Basic, Standard, and Premium members can enable people who share their accounts to transfer profile information to either a new account or sub-account.
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