Netflix has finally confirmed that it will add ads to streaming. The news was announced by Ted Sarandos, co-CEO of the company, during his participation in the Cannes Film Festival, this Thursday (23).
Change is a response to negative numbers recorded by the company in the last quarter — the platform lost more than 200,000 subscribers in three months. The executive said that Netflix is already in “negotiations with potential partners” for the sale of ads.
Sarandos, however, explains that the change will not apply to all subscribers. “We’re not adding ads to Netflix as you know it today. We’re adding an ad layer for people who say, ‘Hey, I want a lower price and I’ll watch ads,'” he says.
Possibility of selling Netflix
It is not yet known whether this will be the way out for the comeback of the streaming giant, which has seen its shares fall considerably in recent months.
The executive says that the acquisition of the company is always a possibility and that it is necessary to have “eyes wide open” for this, but insists that there is still a lot of market to explore with Netflix. “We have enough scale, profitability and free cash flow to continue to grow the business,” he noted.
There’s no word yet on when the ad plans will hit streaming for all markets.