Netflix is adding a new "tier" that will offer a cheaper monthly subscription in exchange for adverts.
It will be the first time adverts have ever appeared on the streaming service, which is trying to bounce back after losing subscribers for the first time in a decade. According to The Hollywood Reporter, Netflix's co-CEO Ted Sarandos announced the cheaper tier at an industry event on Thursday.
"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 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.'"
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Netflix has yet to announce when it will roll out the new, cheaper tier. However, this more affordable option will be especially welcome given that Netflix raised its subscription prices earlier this year.
The cost of a basic monthly plan, which allows viewers to watch on one screen at a time and download to one device, rose for the first time in a decade: from £5.99 to £6.99.
The standard plan, which allows viewers to watch on two screens at once and download content to two devices, increased from £9.99 to £10.99. And the premium plan, which allows viewers to watch on four screens simultaneously and download to four devices, jumped from £13.99 to £15.99.
Netflix has also said it is cracking down on password-sharing in a bid to increase subscribers. "When we were growing fast, it wasn't a high priority to work on [account-sharing]," co-CEO Reed Hastings told shareholders in April. "And now we're working super hard on it."
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