Netflix has announced plans to launch an ad-supported version of its streaming product.
The company is facing falling subscriber numbers due to rising prices and the advent of a new streaming landscape, with players like Disney+ and Apple TV+ eating into the giant’s subscription revenue.
Speaking at the Cannes Lions advertising festival, Netflix co-CEO Ted Sarandos confirmed the news.
He said that the new plan, which will arrive soon, will be aimed at those who thought Netflix was too expensive. “We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” he said.
“We are adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'”
He confirmed that the company was already in talks with ad-sales partners, and though he didn’t offer any specifics, it’s thought that the company wants to launch the new ad-supported tier this year.
The news comes after Netflix is also reportedly clamping down on account sharing, with the company considering adding an extra payment for those who share their accounts with different households. This was a reaction to the company losing subscribers for the first time in ten years, with the company telling shareholders that revenue growth had “slowed considerably” because of account sharing and competition.
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