Confirmed: Netflix will soon introduce new subscription tiers with advertising

Ted Sarandos, Co-CEO of Netflixthis week confirmed what’s been around for a while: the streaming service is coming soon advertising switch. Sarandos revealed the now official project of the streaming platform on Thursday in an interview at the advertising festival Cannes Lionswhich is taking place this week.

Netflix will be showing ads soon

He confirmed that the company is doing so “larger customer segment” want to win and it is a separate offer will act. Accordingly, existing accounts will not be affected.

“We didn’t pay attention to a large proportion of customers, which are the people who say, ‘Hey, Netflix is ​​too expensive for me and I don’t mind advertising.'”

Ted Sarandos

With this step, the company wants to win back subscriberswhich have been put off by a series of increases in monthly subscription costs and attract customers at the same timewho haven’t tried the streaming platform yet.

However, the CEO did not say when the new and cheaper subscription will be launched. However, it is assumed that this subscription model will still be in use until the end of 2022 goes to the start.

The competition has been doing it for a long time

The plans for a cheaper, advertising-supported offer correspond to those of the competitor DisneyPlus, which also hopes to launch a similar offering by the end of the year. have meanwhile hulu, HBO Max, Paramount Plus and Peacock have had a corresponding subscription model in their range for a long time and show that there are certainly buyers in this market.

Disney’s ad-supported offering is set to roll out initially in the United States and internationally by 2023, and the company plans to limit ad views to four minutes per hour. the Prices for the new offers Netflix and Disney have not yet been announced.