As you may know, Netflix lost 200,000 subscribers in the first quarter of 2022. A first in the history of the streaming platform. To prevent this exodus from increasing, Netflix has mentioned the implementation of several measures. For example, it will add live broadcasts and modify the schedule of broadcasting of series by offering only one episode per week instead of the entire season.
Another idea put forward by the service: the launch of a subscription with advertisements offered at a lower cost than the already existing formulas. However, the thing was not yet official, since this information came from an internal note sent to Netflix employees.
Never mind, Ted Sarandos, Co-CEO of Netflix alongside Reed Hastings, has just confirmed the thing on the stage of the Cannes Lions, the international festival of creativity. The boss said he hopes to win a ‘large segment of customers’ with this ad format. He also recalled that it will be a separate offer. In other words, subscribers to current plans won’t start getting ads in the middle of their Stranger Things episode.
NETFLIX CEO CONFIRMS ADS ARE COMING
“We’ve left out an important customer segment, which is people who say, ‘Hey, Netflix is too expensive for me and I don’t mind advertising;’ We are adding a level of advertising, we are not adding advertising to Netflix as you know it today. We’re adding a level of advertising for people who say, I want a lower price and I’ll watch the ads;” explained Ted Sarandos on stage at the Cannes Lions.
Unfortunately, the boss did not give more explanations or details on this new formula. He simply made it clear that he was particularly optimistic about the company’s prospects; assuring that Netflix “has plenty of scale, profitability and free cash flow to continue to grow its business”.