TV & Film
Netflix boss confirms adverts are coming to the streaming platform ‘in next year or two’
Netflix lost around 200k subscribers at the start of 2022
Netflix co-CEO Ted Sarandos has confirmed adverts will be coming to some subscription packages as part of its vision for the future.
While the lack of adverts is undoubtedly one of Netflix’s biggest selling points, the streaming service has revealed that adverts will soon be a part of its viewing experience in response to the rising cost of living and increasing competition.
Netflix lost around 200,000 subscribers in the first quarter of 2022, and is expected to lose even more in the coming months as people cut back on their monthly outgoings.
In response to this, Netflix has confirmed it is now in the process of introducing a more cost-effective tier of subscription with adverts on the platform.
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According to the Hollywood Reporter, Ted Sarandos confirmed at the Cannes Lions advertising festival that the streaming service had already started talks with potential advertisers.
He explained: “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’.
“We’re 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 also discussed the possibility of Netflix being bought out in the future as a result of the company’s plunging stock price since the start of the year.
Netflix
While admitting the chances that someone might buy out Netflix are ‘always a reality’, Sarandos insisted the streaming giant had it in them to ‘return to prosperity’ by itself.
He previously said that the ad-backed tier would launch ‘in the next year or two’, and would do so as a publisher without the data tracking and ad-matching that some competitors are embracing.
This comes just months 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.’