Netflix's Co-CEO Ted Sarandos has finally, officially confirmed the not-so-secret fact that adverts are coming to the streaming service.
Reports that the Netflix was looking to integrate adverts into its service in some way first leaked back in May, with insiders hinting that a cheaper tier of Netflix would be made possible by the inclusion of ads. Sarandos has now confirmed these leaks to be true (thanks, The Hollywood Reporter).
Take a look at the final trailer for Stranger 4 Things 4 Vol. 2 below! I hope Netflix knows the fate of Steve Harrington will have a direct effect on many a Netflix subscription next month.
Back in March Netflix Chief Financial Officer Spencer Neumann was asked about the prospect of a cheaper ad-supported tier, and said simply that it was "not something in [the brand’s] plans right now".
Advert
Clearly, Netflix has had to adapt fast. It's been a tough few months for the streaming giant: its latest earnings report recorded its biggest loss in nearly 10 years, and soon after managed to wipe $50 billion of its value in less than 24 hours.
During the Cannes Lions industry festival, Sarandos said onstage that Netflix hopes to gain a "big customer segment" with this new tier. He also stressed that the ad-supported tier will be an entirely seperate offering, and that adverts will not suddenly start showing up on existing Netflix accounts.
He explained: "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, 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.'”
There's no word yet on when exactly this new, cheaper tier will be rolled out, but previous reports suggest we'll see it before the end of 2022. We'll update you just as soon as we know more.
Featured Image Credit: NetflixTopics: Netflix, TV And Film