Netflix’s co-CEO Ted Sarandos has confirmed that the company plans to introduce an ad-supported tier to its streaming service. In an interview, the co-CEO stated that the company plans to add the new tier by the end of 2022.
“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.’”
Netflix in its last quarter lost 200,000 subscribers, the first time in over a decade. The company still currently has over 200 million subscribers.
Source: The Verge