There have been a number of rumors about Netflix launching an ad-supported version of their streaming service, this has now been confirmed by the company.
The confirmation came from Netflix’s co-CEO Ted Sarandos at the Cannes Lions Advertising Festival, you can see what he had to say below.
“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,’” Sarandos said. “We [are] 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.’”
It is not clear as yet how much different the new Netflix ad-supported tier will be to the existing subscription versions.
The company is looking to increase subscriber numbers after it lost 200,000 subscribers in quarter one of this year.
A cheaper option than the current Netflix streaming options which are subsidized by adverts could allow it to start increasing its subscriber numbers again significantly.
At the moment Netflix offers three subscription options, a Basic version which costs $9.99 a month, a Standard version which costs $15.49 a month, and a Premium version which costs $19.99 a month. It is not clear as yet how much the advert-supported version will cost.
Image Credit: Mollie Sivaram