Netflix announced in April that it was seriously considering expanding its advertising efforts after it reported a drop in members for the first time in a decade and forecasted a decrease of 2 million customers for the following quarter.
The streaming giant Netflix Inc. is looking to fix lagging subscriber growth by bringing out a cheaper plan with advertisements, according to comments made by co-CEO Ted Sarandos on Thursday. Netflix is currently in discussions with numerous firms for advertising agreements.
Earlier this week, many news outlets reported that the company was in talks to form prospective marketing partnerships with Google and NBC Universal, both of which are owned by Comcast Corporation.
When asked at the Cannes Lions conference which firm Netflix was hoping to work with, Sarandos responded, “We’re talking to all of them right now.”
Requests for comments from Reuters were not immediately met with a response from either Alphabet or Comcast.
Netflix announced in April that it was seriously considering expanding its advertising efforts after it reported a drop in members for the first time in a decade and forecasted a decrease of 2 million customers for the following quarter.
“We will not be bringing advertisements to Netflix in the form that you know it now. “We’re introducing an ad tier for people who say, ‘hey, I want a cheaper price and I’ll watch advertisements,'” Sarandos said at Cannes Lions. “We’re offering an ad tier for those who say, ‘hey, I want a lower price and I’ll watch advertising
As the pandemic boom in streaming fades, competition heats up, and rising inflation pinches consumer spending on entertainment, the most formidable competitor to Netflix is Disney+, which is owned by Walt Disney Co. Disney+ has also announced that it will introduce a tier that is supported by advertisements.