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Netflix confirms ad-supported subscription tier under works

29 June 2022 10

Netflix has officially confirmed that it is indeed working on a cheaper, ad-supported subscription tier. The confirmation has been given by Ted Sarandos, co-CEO of Netflix, during the Cannes Lions advertising festival. We first heard about such a plan under consideration last month and with a possible release by the end of the year.

The world's leading streaming service provider has usually maintained a stance against advertisements. It has touted ad-free entertainment as one of its key highlights. Sarandos says they now want to focus on the user segment who are okay with watching ads if it means they get to pay less money to access the service.

Here is what Sarandos said about the reason behind the change in approach,

"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 [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."

This makes it clear that users who do not like ads will have nothing to worry about. They will continue to get the entertainment and user experience they have been enjoying so far. The new ad-supported and affordable plan will be for those who find existing subscription plans to be expensive and are also okay with watching ads.

Netflix says it is yet to figure out how these ads will be implemented on the service. This makes sense as they would not ads to be the reason for ruining the streaming experience. They would want to integrate ads in a way that they do not annoy users. The whole idea is currently in an early phase and will take some time before it becomes a reality.


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Netflix confirms ad-supported subscription tier under works
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