“Netflix price hike”, “Netflix takes action against account sharing” and “Netflix wants to introduce an ad-supported subscription level.” All voices more or less heard so far. The ad-supported subscription level appears to be confirmed.
Netflix co-CEO Ted Sarandos confirmed Thursday at the Cannes Lions Advertising Festival that advertising is possible in the future. Netflix has long been reluctant to run ads on its subscription service.
However, after the company released disappointing numbers for the stock market last quarter and lost subscribers, there was a lot of talk about introducing a low-priced ad-supported offering for its service in order to attract new customers.
The Hollywood Reporter quotes: “We’ve left a large segment of customers off the table – people who say, “Hey, Netflix is too expensive for me and I don’t mind advertising.” Let’s add an advertising layer; we do not add ads to Netflix as you know it today. We’re adding an ad layer to allow people to say, “Hey, I want a lower price and I’ll see ads.. ‘”
Sarandos confirmed in the conversation that the company is in talks with potential ad-selling partners (note: of course, Google is also in talks).
The Netflix executive described the recent decline in the company’s stock as part of the inevitable ups and downs of the nascent online streaming business.
Let’s see what the future holds for Netflix. And how much it costs the customer.