There will undoubtedly be a paid tier for Netflix.
Netflix floated the idea earlier this year that commercials might be included in a lower-cost subscription tier. According to The Hollywood Reporter (opens in new tab), this is now a done deal.
During the Cannes Lions advertising event, Netflix Co-CEO Ted Sarandos verified the news (Thursday, June 23). Sarandos told Kara Swisher of Sway podcast that advertising will play a role in Netflix’s future.
There are a lot of individuals who say “Hey, Netflix is too expensive for me and I don’t mind advertising,” Sarandos said. “We’ve left a significant customer group off the table.”
But Sarandos emphasized that commercials will only be available on this new, lower-cost tier of service. “We’re not going to add adverts to Netflix in the way you’re used to them. Some users have stated that they are willing to watch advertising in exchange for a lower subscription fee.
As a result, when the new Netflix tier begins, existing Netflix subscribers shouldn’t notice any changes. Unfortunately, Sarandos didn’t provide any other information, so we have no idea when or how much this new tier will cost.