Netflix confirms an ad-supported tier is really, actually happening

Photo by Eamonn M. McCormack/Getty Images for Cannes Lions

Ted Sarandos, co-CEO of the streaming service, told The Hollywood Reporter that the company will introduce an ad-supported tier in the near future. According to the New York Times, the company is aiming to roll out the new tier by the end of the year.

"We have 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 are adding an ad tier, but we are not adding ads to the service at this time. We are adding an ad tier for people who want a lower price.

Reed Hastings, one of the service's co-CEOs, said in April that he would be open to the idea of an ad-supported subscription tier.

The company lost subscribers for the first time in over a decade in the last quarter. The company had a loss of 200,000 subscribers in the first quarter. Despite the loss, it remains the largest streaming service with over 200 million subscribers.

Which ad-sales company will help it enter the advertising business is a question that has yet to be answered. The Wall Street Journal reported that two companies were in the running. The company could use a partnership as an interim measure while it builds out its own ad business according to the report.

The question was posed if the company could be the target of a takeover. The company has everything it needs to return to growth, according to the executive. Rumors of a possible acquisition of a streaming hardware company by Netflix were dismissed. According to the WSJ, sarandos said we don't need it.

Disney Plus hopes to launch a similar tier by the end of the year, as well as a cheaper one. Disney will have an ad-supported tier in the US first before expanding internationally in 2023. There is no pricing for the new tiers.

The Verge is working on a series with the internet service provider.