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?
Check out the best documentaries to watch on Netflix