Netflix confirms an ad supported tier is coming to its streaming service by year end
Netflix's Co-CEO Ted Sarandos confirms that ads are coming to its platform by year end.
- Few months back, Netflix laid off 150 employees and dozens of contractors and part-time workers.
- Reportedly, Netflix lost 20 lakh paid subscribers in Q2.
AdvertisementStreaming giant Netflix, which has laid off 450 employees in two tranches so far, is set to launch an ad-supported tier by the end of the year to reduce its losses and bring more users on to the platform.
Netflix's Co-CEO Ted Sarandos confirmed during the Cannes Lions advertising festival that the future of the streaming giant will include ads, reports
"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 told 'Sway' podcast host Kara Swisher.
Sarandos confirmed that the streaming service is in talks with potential ad-sales partners.
As the company's share price has tanked, there has been growing speculation that Netflix can be acquired soon.
Sarandos admitted that a buyout "is always a reality, so we have to be wide-eyed about that".
However, he insisted that "we have plenty of scale and profitability and free cash flow to continue to grow this business".
Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More
Its rival Disney Plus also plans to launch a similar ad-based offering by the end of the year, starting with the US, before going global.
Netflix saw its stock tumbling by 20 per cent after it reported a loss of 2 lakh paid subscribers in the first quarter of 2022, its first subscriber loss in over a decade.
Moreover, it now forecasts a global paid subscriber loss of 20 lakh for the April-June quarter (Q2).
After laying off 150 employees recently, the popular video streaming platform has once again shown the exit door to an additional 300 employees in the second round of layoffs.
The cuts are across multiple business functions in the company, with the bulk of the jobs lost in the US.
The platform has indicated more rounds of layoffs would be coming this year.
Poco F4 5G vs iQOO Neo 6 5G — specifications and features compared
Google’s latest update brings safer browsing, a new home screen, better translation and more for Chrome on iOS
Popular on BI
- OpenAI CEO Sam Altman is privately reassuring developers using the company's tech that it won't compete with them beyond ChatGPT
- The crowd at the unveiling of Apple's Vision Pro headset let out a collective groan when they found out how wildly expensive it was
- My twin and I were in separate classrooms in school. Our joint math lesson made me realize how silly that was.
- Workplace toxicity is common but not enough gets recorded, say HR veterans
- Sensex, Nifty50 likely to open on a tepid note amid mixed global cues: Adani group, Torrent Power, Mazagon Dock among stocks to watch
- These midcap stocks can be the next multibaggers, according to Goldman Sachs
- Auto and BFSI seen driving India Inc’s earnings growth this financial year
- Indian and Chinese households top the global food wastage list