Netflix could introduce cheaper ad-supported subscription plans according to co-founder and co-CEO Reed Hastings.
Speaking as the streaming giant unveiled a 200,000 decline in overall subscriber numbers, Hastings said he was open to introducing an advert subsidised tier to increase “consumer choice.”
Around 600,000 US and Canadian users ended their subscriptions following a recent price increase which was subsequently also introduced in the UK. Last month Netflix said it would start clamping down on the sharing of passwords in a bid to ensure that all those using the service are paying for it.
Disney+ has confirmed plans to introduce an ad-supported plan globally while in the US a number of services, including Paramount+, Hulu and Peacock, already offer the option of cheaper accounts in return for watching adverts.
Hastings said the firm would develop plans for a potential ad-based offering “over the next year or two”.
While Netflix remains the dominant streaming service, it faces increasingly tough competition from studio-owned rivals which offer exclusive content from franchises such as Star Wars, Star Trek and Marvel, in addition to bringing subscribers big name movies shortly after their cinema debut.
