Following the loss in subscribers for the first time in a decade and a projected decline of about two million subscribers in the upcoming quarter, Netflix said they are considering adding a tier of advertising for those who want a lower price and don’t mind advertisements.
Netflix Inc is again in the news for the same, co-CEO Ted Sarandos said on Thursday that they are in talks with various companies for advertising partnerships. The streaming giants' answer to the dive in users is introducing a cheaper plan including ads.
Media reports from earlier this week said it was in discussions with Alphabet Inc’s Google and Comcast Corp’s NBCUniversal for potential marketing tie-ups.
When asked which company they are looking to partner with at the Cannes Lions conference Sarandos replied that they are talking to all of them right now.
“We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘hey, I want a lower price and I’ll watch ads’,” Sarandos said.
Netflix’s biggest competitor- Walt Disney Co’s Disney+ has also said that are looking into introducing an ad-supported tier, as the covid-caused boom has also died down.
One of the causes for the decline in users is an after-pandemic effect, and rising inflammation, which has caused customers to cut down their entertainment expenditure.