Netflix’s co-CEO Ted Sarandos has confirmed that the corporate plans to introduce an ad-supported tier to its streaming service in an interview on the Cannes Lions promoting pageant, reviews The Hollywood Reporter. The New York Instances reported final month that the corporate is aiming to roll out the brand new tier by the tip of 2022.

“We’ve left a giant buyer phase off the desk, which is individuals who say: ‘Hey, Netflix is simply too costly for me and I don’t thoughts promoting,’” Sarandos stated. “We [are] including an advert tier; we’re not including adverts to Netflix as it in the present day. We’re including an advert tier for people who say, ‘Hey, I need a cheaper price and I’ll watch adverts.’”

The streaming service has been extensively anticipated to launch an ad-supported subscription tier for its service ever since its different co-CEO Reed Hastings stated he’d be open to the concept in April.

Netflix’s plans to launch the brand new, cheaper tier follows information that it misplaced subscribers for the primary time in over a decade final quarter. The corporate reported a lack of 200,000 subscribers in Q1 2022, in comparison with the fourth quarter within the earlier 12 months. It stays the most important streaming service with roughly 222 million subscribers, however the loss has compelled Netflix to rethink its traditionally hardline stance in opposition to adverts.

Now, the query is which ad-sales firm Netflix will associate with to assist it enter the promoting enterprise. Earlier this month the Wall Avenue Journal reported that NBCUniversal and Google had been two high contenders. When requested in the course of the Cannes interview, Sarandos wouldn’t be drawn on who Netflix would possibly associate with (“We’re speaking to all of them proper now,” he stated), however prompt the corporate might use a partnership as an interim measure whereas it builds out its personal advert enterprise, in accordance with the WSJ.

Sarandos was additionally requested if Netflix’s tanking share worth might make the corporate the goal of a takeover. In response, the manager stated that it’s “all the time a actuality,” however claimed the corporate has every thing it must return to progress beneath its personal steam. He additionally dismissed latest rumors that Netflix may very well be seeking to purchase a streaming {hardware} firm like Roku. “We don’t want it,” Sarandos stated, in accordance with the WSJ.

Netflix’s plans for a less expensive, ad-supported tier, mirror these of rival Disney Plus, which additionally hopes to launch an analogous providing by the tip of the 12 months. Disney’s ad-supported tier will come to the US first, earlier than increasing internationally in 2023, and the corporate plans to restrict adverts to 4 minutes per hour. Pricing for each Netflix and Disney’s new tiers is but to be introduced.

Disclosure: The Verge is presently producing a collection with Netflix.

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