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It's official: Ads are coming to Netflix

24 Jun 2022 | Rasmus Larsen |

Netflix's Co-CEO has confirmed that Netflix will introduce a new tier with a lower price and ads. There will still be premium tiers without ads.

At the Cannes Lions advertising conference this week, it was confirmed to the Hollywood Reporter that Netflix is following HBO Max, Disney+ and others into the ad business.

The company's CO-CEO emphasized that Netflix is planning to still offer premium tiers without ads. The ad-supported tier will be a cheaper package.

- "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,'" Netflix's Co-CEO Ted Sarandos told the Hollywood Reporter. "We 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.'"


Netflix

You will soon be able to get cheaper access to Netflix with ads

Netflix ruled out ads in 2019

The move comes after Netflix for the first time in over a decade lost subscribers (200,000) in the first quarter of 2022. A cheaper ad-supported plan will make the streaming service more approachable in both developed and emerging markets. In mid-2019 Netflix insisted that it would not introduce ads. He did not confirm when Netflix intends launch its ad-supported tier but in internal briefings the company has reportedly told employees that it could happen by the end of 2022. Google and Comcast's NBCUniversal are top contenders to partner with Netflix for the ad-supported tier, according to the Wall Street Journal. Netflix is also planning to crack down on password sharing. - Source: Hollywood Reporter, WSJ



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