According to The Hollywood Reporter, Netflix is set to jump on the bandwagon for showing advertisements to paying members. This has become increasingly popular across many of the newer streaming services, but it’s not all bad, as this will be introduced as an additional tier for those who want to pay less, and don’t mind seeing ads. Apparently, those people exist, but I’m certainly not one of them.
“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 Thursday, speaking on the Cannes Lions stage with Sway podcast host Kara Swisher. “We adding an ad tier; 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.’”The Hollywood Reporter
Speaking at the Cannes Lions advertising festival this past week, Netflix CEO Ted Sarandos let the cat out of the bag on this entire thing. Previously, it had been rumored, but not yet confirmed. Obviously, this comes to market as a viable option for the service as it has seen its share prices drop drastically, and recent reports state that it could be in talks with Google to implement these ads via the tech giant’s ad sales teams and technology.
At this time, there’s no telling whether or not the new ad-supported tier will infuse Netflix with enough growth to keep it from becoming the next Blockbuster. All kidding aside, there is a real possibility that despite its efforts with this and its new gaming initiative, Netflix could lose its crown to some of the new kids on the block like Paramount Plus, Disney+, Peacock, and others. Perhaps users are beginning to use a combination of these services, and as I said, many of them also have ad-supported paid subscriptions, so it’s likely that Netflix itself will just become another one of the many options instead of the king of the hill.
Regardless, I’d be interested in hearing your thoughts in the comments below. Are you going to keep your Netflix subscription for Stranger Things, The Umbrella Academy, and other upcoming releases, or have you already canceled it and moved on to something else?