TV - Movies
Netflix CEO
Reveals Which
Will Have To
Watch Ads
This year has been a year of change for Netflix; the once-dominant streaming service is embattled over controversies, and its stock price has taken a significant hit. In need of an infusion of cash, Netflix announced in May that it was working on plans to implement an ad-based option, which Co-CEO Ted Sarandos provided clarity on.
Sarandos divulged that the new ad-based tier is intended to attract new subscribers who are not bothered by advertisements. He said, “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 clarification should come as good news to current subscribers. Netflix Co-CEO Reed Hastings noted that the option of ad-free or ad-based offerings has worked for streaming competitors, and the company will "just get in and figure it out — as opposed to test it and maybe do it or not do it."