This news comes after a report had already revealed a disappointing revenue growth for the streaming service. While the first decline in subscribers for the first time in 10 years also emerged.
Since then, the streaming giants have been trying to come up with ways of sourcing revenue.
According to the New York Times, the introduction of an ad-based subscription could happen "by the end of the year".
The plan is to introduce this subscription in the final three months of 2022. "Every major streaming company excluding Apple has or has announced an ad-supported service", Netflix said in a recent note to their staff. "For good reason, people want lower-priced options".
Netflix are also announced plans to start charging users for sharing passwords. This is a plan which has already been piloted in Latin America, where users who have shared their Netflix password are charged a higher premium.