Netflix is preparing to introduce cheaper subscription deals - but there will be a catch.

With subscriber numbers falling and the cost of living crisis continuing to bite, the company is reportedly speeding up its plans to bring in lower-priced monthly payment options for customers.

The streaming service, behind hit shows such as The Crown and Squid Game, is now expected to launch cheaper monthly deals before the end of this year and these packages will be supported with adverts.

Currently there are no advertisements with Netflix, which allows you to watch film and television programmes on a smartphone, tablet, smart TV, laptop or other steaming service for a fixed monthly fee.

Is it not yet clear how much the new cut-price deals will cost but in the UK monthly plans currently range from £6.99 to £15 depending on the terms and conditions of the package chosen - such as the number of devices watching Netflix at any one time and whether shows are being streamed in high definition.

The company, which boasts that there are no 'extra costs, no contracts', has faced a difficult start to the year after it revealed it lost 200,000 users in the first three months of this year.

Performance results fell well short of predictions that it would add 2.5 million subscribers as countries emerged from the pandemic.

Alongside the emerging cost of living crisis which is forcing homes to cut back on 'non-essentials', the reopening of cinemas, greater options for people to now socialise outside of their home after lockdwn and the popularity of other subscription services such as Disney Plus, Prime and Apple TV are all thought to have contributed to a drop in demand for Netflix.

The US firm had previously said proposals to add adverts to the streaming service may come in the next 'year or two'. But plans to tempt subscribers back, or maintain their custom, could now be unveiled as early as the end of this year suggests a leaked company memo shared with The New York Times.

As the company races to improve its performance, a crack-down on password sharing could also be on the horizon.

It was back in March 2021 that Netflix first said it was trialling new technology to clamp down on the problem, but with the company reporting its slowest ever growth for the start of a year since 2015 and the price of shares falling, it is thought to also now be pressing ahead with work to cut down on the numbers watching its content for free because they've borrowed the password and log in details for someone else's account.