Due to high competition in the streaming services market and the deteriorating economic situation in the world, Netflix is not experiencing the best of times. It first started losing subscribers, among whom the percentage of those who have subscribed to the service for more than 3 years is growing. So it is not surprising that the company is beginning to look for ways to increase earnings.
In particular, Netflix plans to add advertising to its streaming, writes The Hollywood Reporter. According to Ted Sarandos, co-CEO of the company, subscribers who want to watch Netflix content at a lower price will be able to do so by watching commercials.
“We’ve left a big customer segment off the table, which is people who say: “Hey, Netflix is too expensive for me and I don’t mind advertising,” Sarandos said during a panel at the Cannes Lions International Festival of Creativity. “We’re adding an ad level. We do not add ads to Netflix as you know it today. We’re adding an ad level for people who say, “Hey, I want a lower price and I’m going to watch commercials.”
Sarandos also confirmed that subscriptions without ads will remain for customers who are willing to pay a higher price. Netflix has not yet announced the new cost of tariffs, their current structure is based on video quality, the most expensive allows you to watch videos in 4K. It seems that adding advertising to Netflix aims to raise the cost of existing subscriptions, reducing the negative by the fact that the user still has the opportunity to pay, but watch commercials.