Netflix’s co-CEO Ted Sarandos has confirmed that the company plans to introduce an ad-supported tier to its streaming service in an interview at the Cannes Lions advertising festival. The New York Times recently reported that the company is aiming to roll out the new tier by the end of 2022.
“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. “We are 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.’”
Sarandos was also asked if Netflix’s tanking share price could make the company the target of a takeover. In response, the executive said that it is “always a reality,” but claimed the company has everything it needs to return to growth under its own steam. He also dismissed recent rumors that Netflix could be looking to buy a streaming hardware company like Roku.