The streaming platform had a bad start to the year, losing 200 thousand subscribers in the first quarter of 2022.
Netflix reported its first losing quarter in ten years, a milestone that has prompted a change in CEO Reed Hastings ‘ view of advertising.
In a call with investors and analysts, Hastings revealed his change of heart.
“Those who have followed Netflix know that I have been against the complexity of advertising and I am a fan of the simplicity of subscription. Even though I’m a huge fan of it (subscriptions), I’m a bigger fan of consumers having choice,” he assured.
The strategy would be to offer cheap plans with advertising and lower the prices of some plans if the user accepts to see ads.
Netflix with advertising: it will not be immediate
But Netflix is taking its time, with its leader clarifying that it will take perhaps up to two years to find ads built into the platform.
“It’s something we’re looking at. We’re developing it next year or the year after that. But think of us as quite open to offering even lower ad-supported prices as an option for consumers,” he said.
Hastings hinted that Netflix is considering putting the ads out to “other people” so the company can focus on content.