Netflix has confirmed that the streaming service will come with a cheaper subscription that shows ads while streaming. CEO Ted Sarandos made it official for the first time at the Cannes Lions film festival. Pricing details are not yet known, but currently the cheapest subscription fee is 8 euros and adsstage it will probably just sit there.
During the film festival, Sarandos announced that Netflix is in talks with Alphabet, NBC Universal, and Comcast, among others, to bring advertising to the service. “As you know, Netflix won’t be getting ads. We’re adding a level for customers who say, ‘Hey, I want to pay a lower price and I’m ready to watch ads,'” Sarandos said.
Netflix isn’t the only streaming service that wants to lower the price and display ads in return. This is also discussed on Disney+. In fact, there are some services that currently offer ad subscriptions, including Discovery+, Paramount+, and HBO Max. All these services have not yet created such a structure in Europe.
Since recent disappointing results, the streaming giant has been considering a subscription with ads. It was previously suggested in an internal document that this subscription will be released later this year, but it is unclear whether this also applies to Europe. Netflix typically tests such effective new strategies in smaller markets; for example the more expensive partial subscription was tested in South America.
Source: Reuters
Source: Hardware Info
