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27 June 2022, 14:47
Netflix is going to start putting adverts on its platform, execs have confirmed.
After increasing its subscription rate to manage a drop in customers, Netflix is turning to adverts to fund a lower-priced tier, in a bid to lure viewers back.
Since the end of lockdowns and a return to normality, people have been cancelling a number of their TV subscriptions, and Netflix, the home to shows like Squid Game, Bridgerton and Stranger Things, is among the platforms hit hardest.
The streaming giant is going to start putting adverts on its service, but only for those who wish to pay less.
It means that Netflix as you know it won’t change any time soon, unless you decide to opt for the lower-priced tier.
Ted Sarandos, Netflix’s co-chief executive, confirmed the new plan will be coming soon.
During an interview at Cannes Lions festival he said: “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.’
“We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.’”
He stressed that ads will only be visible on that particular tier, and that regular subscribers won’t see them on ‘Netflix as you know it today.’
It comes after Netflix announced earlier this year they had lost 200,000 subscribers in its first quarter.
Suspending its service in Russia amid the invasion of Ukraine has also cost them 700,000 members.