![]() ![]() The share price fell significantly following the news, wiping away roughly $70 billion in the company's market capitalisation. Netflix had at the time just revealed that it lost 200,000 subscribers in the first three months of the year, and expected to lose 2 million more in the second quarter. In April 2022, Netflix CEO Reed Hastings revealed in an earnings call that the platform would introduce ads in the 'next year or two'. This tier will come to US viewers on December 8 and to viewers in other markets next year. Netflix's streaming rival Disney+ is also introducing an ad-supported subscription tier. 'We will clear some additional content, but certainly not all of it, but we don't think it’s a material holdback to the business.'īBC-produced content could be excluded from the tier, because the BBC isn’t allowed to have ads supporting its programmes due to the licence fee. 'There are some things that don’t – that we're in conversation about with the studios on – but if we launched the product today, the members in the ad tier would have a great experience. 'Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier,' said co-CEO Ted Sarandos said at the time. Netflix also revealed in July that the new ad tier won't have access to Netflix's entire content library. 'We expect advertisers seeking the chance to reach younger viewers who have abandoned traditional television will likely allocate a greater part of their marketing budget to advertise on Netflix in the future.' 'The launch of Netflix’s lower-cost, ad-supported version of the service is expected to be the much-needed growth catalyst the streaming giant has been missing in recent years,' Cohen told MailOnline. Jesse Cohen, a senior analyst at, predicts the new ad-supported tier will be a success for Netflix, and will attract younger users. It is hoped that a cheaper tier could help entice users who are on a budget, and in turn help Netflix reverse the recent fall in subscriber numbers. The new tier will be cheaper than the other existing tiers – Basic, Standard and Premium – but it won't be free, meaning customers will have to endure ads on top of paying a monthly subscription price. ![]() It then lost nearly 1 million subscribers in the second quarter of the year, although this is still just a fraction of its 220 million global total. In April, Netflix announced it would abandon its resistance to ads after disclosing it had lost 200,000 subscribers globally during the first three months of the year. Since its inception 15 years ago, Netflix had refused to include commercials in any of its offerings, but that has all changed this year. We just need a few details to make sure you get the most relevant ads on Netflix. The text reads: 'Now, let’s set up your ad experience. Other text in the code suggests users will have to answer a few questions during the set-up process to get the 'most relevant' ads, Moser said. Moser – an iOS developer based in Charlotte, North Carolina who 'mines software releases for hidden gems' – detailed his discoveries in a blog post. However, adverts still appear on other streaming services when content has been downloaded (such as on All 4, Channel 4's video on demand service). Therefore, giving users the ability to watch content offline would mean ads wouldn't be able to run. It's possible that adverts on Netflix – which are being developed in partnership with Microsoft – will need an internet connection. 'So this is all just speculation at this point.' Netflix wouldn't confirm or deny whether the ability to download content would be removed from the ad tier.Ī company spokesperson told MailOnline: 'We are still in the early days of deciding how to launch a lower priced, ad-supported option and no decisions have been made.
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