Netflix co-CEO Ted Sarandos confirms in an interview that the company is launching a subscription that serves ads.
The interview took place during the Cannes International Advertising Festival. Last month, it was rumored that Netflix wants to roll out this subscription before the end of 2022.
So now the bullet is through the church, writes the Hollywood Reporter† “We don’t include a potential group of subscribers,” Sarandos said. The co-ceo is referring to a specific group.
New Netflix subscription
It concerns the group that finds Netflix too expensive and has no problems with advertisements. That is why a new subscription is coming, which is cheaper thanks to the display of advertisements.
It is therefore not the case that subscribers of current subscriptions will suddenly see advertising. Back in April, Netflix’s other CEO, Reed Hastings, said he’s open to this particular idea.
Netflix has to do something. For the first time in more than a decade, the company recently lost paying customers. About 200,000 people waved goodbye to the service in the first quarter of 2022.
Despite this, Netflix remains the largest video streaming service today, with some 222 million subscribers. But the loss hit hard, so the company is now exploring all kinds of options.
