Netflix CEO Ted Sarandos has confirmed adverts will be coming to the streaming service in the near future.
While subscribers who adore binge-watching their favourite shows without being interrupted with ads might be taken aback by the news, fear not.
The streaming giant is planning to introduce a brand new lower priced tier for potential customers who may have been turned off by current subscription prices.
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In an interview with The Hollywood Reporter, Sarandos explained that the company has ignored a segment of the market so far – those who are willing to pay less by sitting through ads.
"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'," he explained.
"We're 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'."
The news of adverts officially making their way to Netflix comes after Netflix announced their first decline in subscribers for a quarter in more than 10 years, which led to the company’s shares dropping by more than 20 percent this year.
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The streaming service had previously forecast 2.5 million new paid subscribers in Q1 and now expects to lose an additional 2 million global subscribers in Q2.
Across the UK, both basic and standard Netflix subscription plans increased in price this year by £1 per month to £6.99 and £10.99 respectively, while premium subscriptions went up by £2 to £15.99.
The home to global hits such as Bridgerton, The Crown and Sex Education said the price hike in the UK and Ireland – where the service boasts around 14 million subscribers – was introduced in order to provide the same level and consistency of content for its subscribers.
They added the price hike comes as a response to added competition from rivals such as Amazon Prime Video, Disney+ and Apple TV.
Netflix is not the only streaming service to introduce ads. Amazon Prime began introducing adverts for certain films and TV shows in 2020.
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Disney+ previously announced in March a similar ad-based service for the US in 2022 and 2023 for international customers.
The US streaming service Hulu also offers an ad-based tier for customers.
The price of the new tier has not yet been announced.
Netflix is also working on introducing a fee to stop customers from sharing their passwords.
Featured Image Credit: ShutterstockTopics: TV And Film, Netflix