Netflix reveals plans to introduce adverts on some subscription packages

Netflix has unveiled plans to introduce adverts in a bid to offer affordable streaming options for its customers.

While the lack of adverts is undoubtedly one of Netflix’s biggest selling points, the streaming service has revealed that adverts could soon be a part of its viewing experience in response to the rising cost of living and increasing competition.

Netflix’s co-CEO Reed Hastings unveiled the plans during the company’s quarterly earnings call yesterday (April 19th), where he admitted that advertising is now an ‘exciting opportunity for us’.

Hastings explained, as per The Hollywood Reporter: “Those who have followed Netflix know that I have been against the complexity of advertising, and a big fan of the simplicity of subscription.

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“But as much as I am a fan of that, I am a bigger fan of consumer choice.

“And allowing consumers who would like to have a lower price, and are advertising-tolerant, get what they want, makes a lot of sense.”

Read More: Netflix announces price increase for all UK customers

Hastings went on to admit that, as well as offering more affordable subscription options for customers, the advertising success experienced by similar streaming services has also played a big role in his decision.

He explained: “It is pretty clear that it is working for Hulu, Disney is doing it, HBO did it. We don’t have any doubt that it works.

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“Think of us as quite open to offering even lower prices with advertising as a consumer choice.”

Hastings said that when Netflix does launch an ad-backed tier – which could be in ‘the next year or two’ – it would do so as a publisher without the data tracking and ad-matching that some competitors are embracing.

This comes just one month after the streaming giant announced it would be increasing the cost of its subscription packages for all UK customers.

Netflix said the increase in price – which will be by £1 or £2 depending on the subscription – will allow its service to ‘continue investing in best in class UK productions’ as well as ‘offer a wide variety of curated quality shows and films’ to customers.’