Earlier in May, it was reported that Netflix was exploring an option to introduce ads to Netflix and official confirmation has finally come through. Netflix CEO Ted Sarandos has confirmed that it is planning to introduce an ad-supported plan to its list of subscription plans.
During an interview with The Hollywood Reporter, the CEO of the streaming service confirmed that it plans to introduce an ad-supported tier to Netflix. “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,’” Sarandos 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 added.
Initially, Reed Hastings, co-CEO of Netflix, during the earnings call in April said that the video streaming service would explore ad-driven alternatives to the existing plans over the “next year or two”. For those unaware, the company reported a huge loss of 200,000 subscribers in Q1 2022, compared to the fourth quarter of the previous year.
That is the reason why Netflix wants to explore more options so it can attract a wider range of audiences. Apart from this, not much is known about the new offering as to when it would arrive and how exactly it will be implemented.
In May, Netflix said in a memo it sent to its staff that it expected its employees to work on shows they may disagree with. It said, “Depending on your role, you may need to work on titles you perceive to be harmful. If you’d find it hard to support our content breadth, Netflix may not be the best place for you”.