Netflix is on the road to advertising partnerships, said co-CEO Ted Sarandos, as the streaming giant works out how to salvage subscriber numbers.
It was reported by news agency Reuters earlier this week, the US firm was in talks with Alphabet and Comcast about potential tie-ups.
Speaking at a Cannes Lions conference, Sarandos said: “We’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say ‘hey, I want a lower price and I’ll watch ads'”.
It is understood that Disney+ is also set to introduce ads in the coming months.
Back in April, Netflix said subscribers were down 200,000 and predicted a further two million subscriber losses.
Not only did this cause the share price to plunge, wiping $40bn off its market value, but it has also had a knock-on effect on operations.
Netflix is set to cut back on its content, and revealed earlier this month that it would be cancelling the development of Meghan Markle’s project Pearl.
It has also laid off around 150 staff, accounting for around two per cent of its US workforce.
The streaming giant said these losses were a result of the company’s dwindling revenue as it posted its first ever loss of subscribers.
More to follow