Netflix confirms it will introduce cheaper ad-supported tier

After several hints that the streaming service will introduce a more affordable ad-supported subscription plan. Netflix Co-CEO Ted Sarandos has confirmed that it is coming in an attempt to bring in new customers.

Speaking to Hollywood Reporter at the Cannes Lions advertising festival, Sarandos confirmed the ad tier. “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,’” said Sarandos. “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.’”

Back in April, Netflix reported that it lost 200,000 subscribers with stock prices dropping by over 23%, followed by the cancellation of multiple shows. Introducing a less expensive ad-supported tier could bring in more subscribers and revenue for the company.