Netflix have officially confirmed that they will soon be adding adverts to the streaming service.
The streaming platform has long been known as one of the first sources of film and television that doesn't force viewers to sit through lengthy commercials. That could change as new rules and updates will see them introduced.
It comes as there has been an increase in subscription costs. The streaming giants reported a huge loss of subscribers over the past year alongside plummeting share prices.
READ MORE: Netflix looking for 456 real players to win cash prize in Squid Game reality series
The plans include a low-price subscription tier which will feature the ads. Reportedly, advertisements will not be added to regular subscribers who are already paying higher-priced subscriptions.
Ted Sarandos, Netflix’s co-chief executive confirmed the new strategy in an interview at the Cannes Lions 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 for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'"
Netflix is not the only popular streaming platform that will be introducing adverts. Disney Plus has also been said to be exploring introducing its own ad-supported subscription tier.
Netflix has been grappling with slowing revenue growth caused by stiffer competition from rival services in recent months. Recently it announced that it ended the first quarter of 2022 with 200,00 fewer subscribers than the three months before - missing its growth projection by 2.7million customers.
The end of pandemic lockdowns, during which many people spent time binge-watching television, and the rise of rival platforms such as Apple TV and Disney Plus, has chipped away at Netflix's dominant position. Some have also cited the cost of living crisis as a possible reason some are ending their subscriptions.
Netflix announced last week that it was forced to cut around 300 jobs - approximately 4 per cent of its overall workforce. A Netflix spokesperson said: "Today we sadly let go of around 300 employees. While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition."
Receive newsletters with the biggest and breaking TV and showbiz news by signing up here
READ MORE:
DWP confirm if £650 cost of living payment in July is per individual or household
ITV The Chase Bradley Walsh's replacement 'identified' as host says 'he's had enough'
Paul O'Grady 'ready to riot' as he is delayed for hours in travel chaos
Strictly Come Dancing's Claudia Winkleman says she is 'fired' after secret slip up
