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Netflix confirms ads are coming – and a cheaper subscription tier

Netflix gaming?
(Image credit: Netflix)

Ted Sarandos, Co-CEO of streaming giant Netflix, has confirmed that advertisements are coming to the streaming platform. The company is responding following the news of its first quarterly loss in ten years, and the loss of around 200,000 subscribers. Sarandos, speaking about the future of the company at the Cannes Lions Festival, said Netflix would need to diversify to make up for the loss.

This diversification included confirming Netflix’s plans to introduce an ad-supported tier for subscribers in order to also deliver a cheaper plan amid steadily increasing streaming prices. Netflix also hopes that this will be a gateway for new customers to subscribe, with Sarandos saying, “We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'"

This is Netflix’s first appearance at the global advertising conference, cementing the company's apparent commitment to introducing commercials into its service. Sarandos went as far as confirming that the company had already begun exploring options for ad-sales partnerships for the platform. 

With the loss in subscribers and the tanking of its share price, the Co-CEO also didn’t rule a buyout of the platform saying that a takeover of the company is, “always a possibility”. 

Netflix isn’t the only one to be introducing an ad-supported subscription tier, with Disney Plus introducing a family-friendly take on the ad-supported subscription tier in the near future. Could ad-breaks be the new norm for streaming services in the near future?

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Lewis Empson
Lewis Empson

Staff Writer Lewis is the newest addition to the What Hi-Fi? editorial team. Previously Gaming and Digital editor for Cardiff University's 'Quench Magazine', Lewis graduated in 2021 and has since worked on a selection of lifestyle magazines and regional newspapers. In his down time he enjoys gaming and regular cinema trips.

  • Freddy
    My niece has just put me on her subscription so getting it free and Apple Music too. :)
    Reply
  • manicm
    Freddy said:
    My niece has just put me on her subscription so getting it free and Apple Music too. :)

    Gee you must feel so proud of yourself.
    Reply
  • Freddy
    manicm said:
    Gee you must feel so proud of yourself.
    Yes, thanks I do. :)
    Reply
  • manicm
    Advertising and clamping down on account sharing is not going to save Netflix. It has lost multiple series like Star Trek and the new season of Dynasty, and others as well. It needs to produce or procure more compelling content to compete with Disney+ and Amazon Prime, not to mention others. It's also going to be dealt a double blow by the upcoming Lord Of The Rings TV series on Prime, and the GOT prequel House Of The Dragon.

    If there's nothing to watch advertising is not going to lure viewers. Simples.
    Reply
  • Freddy
    To be honest I don’t even watch Netflix even though I got a free subscription and probably never will do.
    Reply
  • Tinman1952
    Freddy said:
    To be honest I don’t even watch Netflix even though I got a free subscription and probably never will do.
    You should. They have some excellent original movies.... in Dolby Vision often! 👍
    Reply
  • Freddy
    Tinman1952 said:
    You should. They have some excellent original movies.... in Dolby Vision often! 👍
    Cheers! I will have a look around.
    Reply
  • Neiljbp
    Freddy said:
    My niece has just put me on her subscription so getting it free and Apple Music too. :)
    What is it with folk wanting everything for nothing. I could go on being extremely rude or modern about all of this, but it is just too depressing to bother with.
    Reply
  • Freddy
    Neiljbp said:
    What is it with folk wanting everything for nothing. I could go on being extremely rude or modern about all of this, but it is just too depressing to bother with.
    Get a life! :)
    Reply
  • Friesiansam
    Neiljbp said:
    What is it with folk wanting everything for nothing. I could go on being extremely rude or modern about all of this, but it is just too depressing to bother with.
    You are criticising @Freddy because his niece chooses to pay to add him to her subscription.

    Have you got nothing better to do?
    Reply