Netflix has given an update on its plans to introduce adverts to its content. The streaming platform wants to introduce a cheaper subscription tier supported by advertising, the firm's co-CEO Ted Sarandos has confirmed.
BirminghamLive reports that, in an interview at the Cannes Lions Festival, Mr Sarandos 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.'"
In April Netflix revealed that it lost 200,000 users over the first three months of 2022. It said the challenging economic backdrop, war in Ukraine, slowing rollout of broadband in some countries and the large number of subscribers sharing their account details with non-paying households had all contributed to the decline.
According to The Hollywood Reporter, Netflix having a presence at Cannes Lions - a global event for those working in advertising - is "a clear sign the company is looking to embrace the ad industry" and that Mr Sarandos "confirmed the company is in talks with potential ad-sales partners."
Netflix announced last week that it was forced to cut around 300 jobs - approximately four 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."
