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Netflix confirms an ad-supported tier is coming to its platform

Netflix is in talks with Google and NBCUniversal to introduce and ad-supported tier on its platform. This is likely to help the company increase its subscribers.

Published:Sat, June 25, 2022 10:17am

By Shweta Ganjoo

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Netflix has confirmed that it is indeed working on introducing an ad-supported tier on its platform. The company also said that these plans are in still early stages and it will be sometime before an ad-supported tier is formally introduced.

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"We are still in the early days of deciding how to launch a lower priced, ad supported option and no decisions have been made. So this is all just speculation at this point," a Netflix spokesperson said in a statement to Engadget.

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It is worth noting that Netflix has opposed introducing ads on its platforms since its inception. But now, the company is planning to introduce an ad-supported tier on its platform. According to a report by the Hollywood Reported (via Android Central), the company's Co-CEO Ted Sarandos confirmed this while speaking at the Cannes Lions advertising festival. He also said that Netflix had left out a significant customer base who believe the streaming service is too expensive for them. Sarandos, as per the report, believes that the consumer base wouldn't mind having ads on the platform if it means paying less money for the service.

While the Netflix Co-CEO didn't share further details about the company's upcoming plans, a separate report by The Wall Street Journal says that the company is reportedly in talks with Google and NBCUniversal to introduce ads on its platform. Reports also suggest that Roku is also in talks with streaming giant to build an ad-included plan for the subscribers who wanted to access the platform for lesser money.

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Notably, the reports come at a time when Netflix has reduced its workforce as it continued to struggle with sluggish subscriber growth. In two separate lay offs the company has let go off a total of 450 employees globally so far.

What does this mean for the subscribers?

While the company hasn't shared any details regarding the matter yet, it isn't hard to guess that ads are coming to Netflix. But it remains to be seen if the company's ad-included tier will be free to use, like the free tier offered by Disney+ Hotstar in India, or if it will charge significantly less amount for its subscription. It also remains to be seen how often and how long the ads will be in the videos streamed on its platform. In any case, the ad-included tier will make the service accessible to a lot of users across the globe.

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