Looking to cut back on your monthly subscription bills? Then a new Netflix service that’s reportedly on the way that could save you money – but it comes with a catch.
According to the Hollywood Reporter, Netflix bosses are planning to introduce adverts to the service, so there could be a cheaper subscription option available for those who are happy to watch ads in return for paying less.
Ted Sarandos, the company’s co-chief executive, confirmed that the new plan would be coming soon during a talk at the Cannes Lions Festival.
‘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 told the audience. ‘We’re adding an ad tier for folks who say, “Hey, I want a lower price and I’ll watch ads.”’
He stressed that the ads would appear in a separate tier, and that they would not show in ‘Netflix as you know it today’.
The news comes at a time when Netflix is struggling to tackle a shrinking user base and its revenue declining, as well as fending off rising competition from rivals including Amazon’s Prime Video, Disney+ and HBO Max.
In March it was revealed that prices are ramping up across a number of Netflix packages. The most basic package, which allows viewers to watch on one screen at a time and download to one device, went up by £1 a month, from £5.99 to £6.99.
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