A Netflix boss has confirmed reports that adverts are coming to the streaming giant in the near future.
Speaking at the Cannes Lions advertising festival, co-CEO Ted Sarandos announced that the company has begun meeting with potential advertising clients ahead of the big change.
Earlier this year, the network took a hit by losing around 200,000 subscribers in the first quarter of 2022, with expectations for more to leave in the months after, reports the Mirror.
Customers have reacted to the news and if some weren't considering ending their memberships before, they definitely are now.
In addition to Netflix cracking down on subscribers sharing their account password with other households, the ongoing cost of living crisis has been suggested as a possible reason why the subscription streaming service is dropping in popularity - as many across the world cut back on non-essential services in an attempt to save money.
According to the Hollywood Reporter, Netflix co-CEO's Ted feels the solution to his company's problems is to introduce and make a cheaper alternative subscription that features adverts available.
Speaking at Cannes Lions advertising festival, he said: "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'."
Ted went on to also discuss the possibility that Netflix may be bought out in the future, as the company's stock price continues to stumble since the start of this year - with shares now worth just $180 each compared to their value of $602 per share at the end of 2021.
Many Netflix users are seemingly unimpressed by Ted's plans for the platform - taking to social media to air their views as the Netflix chief's comments were made public.
"Boooo. One of the main benefits of paying for streaming services is to avoid all the adverts. The gleam really coming off Netflix," journalist Ayesha Hazarika wrote on Twitter as the news of the change broke online.
"If Netflix adds adverts to its service, I will 100% cancel my subscription. I already cancelled NowTv because they made it so you can’t skip previews of shows you don’t care to watch," another user mused on social media, with a third adding: "The moment I see ads on Netflix I cancel my subscription."
Another bluntly mused: "Netflix with ads? This is really the end. Let’s say a prayer for Netflix y’all."
If Netflix do go ahead with Ted's plans, they will join platforms like NOW and Amazon Video in offering adverts on their paid subscriptions service.
It's also rumoured Disney+ has also been looking at a model that allows for a cheaper subscription fee if adverts are permitted to air during shows and films.
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