Netflix confirmed that it will have a cheaper subscription with ads. As reported by The Hollywood Reporter, this could mean the arrival of a new subscription that is cheaper than the current one, with the only difference being the implementation of advertising while watching content.
Netflix co-CEO Ted Sarandos discussed at the Cannes Lions festival the reasons for launching an advertising-based pricing plan.
According to him, the company admits that due to the increase in subscription prices for residents of the United States and Canada, the streaming service lost a huge percentage of subscribers. In order to return customers and attract new ones, a cheaper tariff plan is introduced with “breaks” for advertising.
Netflix wants to make clear is that the current plans will not be affected by the introduction of ads . The idea of the service is to introduce a completely new subscription that is placed as the entry option.
Sarandos said they are already in contact with potential partners such as Google and Comcast. The date, the countries and the prices of the possible new subscription have not been revealed. Also, at the moment, it is not known how many ads there will be or at what times they will appear, but hopefully, they will not end up being as frustrating as in other services that already include them.
