Netflix finally confirms it’s working on a cheaper, ad-supported tier

Netflix finally confirms it’s working on a cheaper, ad-supported tier

Despite CEO Reed Hastings’ strong belief about Netflix not needing to compromise its service with ads, the streaming giant is reportedly going to launch an ad-supported subscription tier soon. We first heard about the upcoming ad-supported tier last month, but Netflix did not confirm the rumors at the time. However, in a recent appearance at the Cannes Lions advertising festival, Co-CEO Ted Sarandos corroborated the rumors and said that the company would soon introduce a more affordable subscription plan with ads to attract new customers.

According to The Hollywood Reporter, Sarandos said, “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.'” The upcoming ad-supported tier will cater to individuals who say, “‘Hey, I want a lower price and I’ll watch ads,'” Sarandos added.


If news about ads on Netflix has you worried, you’d be glad to know that the streaming service won’t be introducing ads across the board. It will limit ads to users who opt for the upcoming subscription plan. If you’re on a more premium subscription tier, you won’t have to bear with ads on Netflix. In addition to confirming the ad-supported tier, Sarandos revealed that Netflix is currently in talks with potential ad-sales partners for the new tier.

Sadly, Netflix is yet to reveal a definite release timeline for the ad-supported tier. Previous reports suggest that it could land by the end of this year. But we’ll have to wait and see how things pan out.

For the unaware, Netflix recently reported a decline in its subscriber base for the first time in ten years. The company lost around 200,000 users in Q1 2022 alone, and the new ad-supported tier is part of its effort to bring new subscribers to the platform.

Source: The Hollywood Reporter

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Pranob Mehrotra
Pranob Mehrotra

A Literature and Linguistics graduate with a keen interest in everything Android. When not writing about tech, Pranob spends most of his time either playing League of Legends or lurking on Reddit.

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