Netflix Co-CEO Confirms Plans for Cheaper Ad-Supported Netflix Tier

Netflix is planning to implement a more affordable ad-supported tier to draw in customers who do not want to pay the $9.99 starting price for an ad-free plan, Netflix co-CEO Ted Sarandos confirmed at the Cannes Lions advertising festival today (via The Hollywood Reporter).

netflix3
The plan is aimed at people who think that Netflix is too expensive and who don't mind ads, with no changes planned for the existing Netflix tiers. "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,'" Sarandos said. "We are adding an ad tier; 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.'"

Netflix is already in talks with ad-sales partners, and while Sarandos did not provide details on when the ad-supported tier might come out, Netflix has told employees internally that it is aiming for a launch before the end of 2022.

The Basic Netflix plan is priced at $9.99 and it offers 480p streaming, while the Standard plan is priced at $15.49 for 1080p resolution. Netflix's most expensive Premium plan, priced at $19.99 per month, is the sole tier that offers 4K HDR streaming. Netflix is the only streaming service that charges extra for improved streaming quality, and the ad-supported tier would presumably offer streaming quality similar to the Basic plan.

In addition to offering an ad-supported tier, Netflix is planning on cracking down on account sharing. In select countries, Netflix has been testing an extra payment for those who share their Netflix accounts with people outside of their households.

In the first quarter of 2022, Netflix said that it lost subscribers for the first time in 10 years. Revenue growth "slowed considerably," which the company blamed on "a large number of households sharing accounts" and "competition." Netflix estimates that 222 million paying households are sharing with an additional 100 million households that are not being monetized. Netflix has confirmed that it plans to implement "more effective monetization of multi-household sharing" in the future.

Sarandos said that he believes Netflix could return to growth with the changes that are planned. "We have plenty of scale and profitability and free cash flow to continue to grow this business," he said, suggesting that there's "still a lot of room to grow."

Tag: Netflix

Popular Stories

iOS 26

iOS 26.1 Coming Soon: New Features for Your iPhone and Release Date

Monday October 27, 2025 7:55 am PDT by
The upcoming iOS 26.1 update includes a handful of new features and changes for iPhones, including a toggle for changing the appearance of the Liquid Glass design, "slide to stop" for alarms in the Clock app, and more. Below, we outline key details about iOS 26.1. Release Date Given that Apple has yet to seed an iOS 26.1 Release Candidate, which is typically the final beta version, the...
iOS 26

6 New Things Your iPhone Can Do in iOS 26.1

Wednesday October 29, 2025 4:22 am PDT by
Apple is about to drop iOS 26.1, the first major point release since iOS 26 was rolled out in September, and there are at least six notable changes and improvements to look forward to. We've rounded them up below. Apple has already provided developers and public beta testers with the release candidate version of iOS 26.1, which means Apple will likely roll out the update to all compatible...
maxresdefault

Apple TV 4K Could Still Launch Before 2025 Ends: All the Rumored Features

Monday October 27, 2025 4:51 pm PDT by
Apple is designing an updated version of the Apple TV 4K, and rumors suggest that it could come out sometime in the next couple of months. We're not expecting a major overhaul with design changes, but even a simple chip upgrade will bring major improvements to Apple's set-top box. Subscribe to the MacRumors YouTube channel for more videos. We've rounded up all the latest Apple TV rumors. ...
iOS 26

Apple Seeds iOS 26.1, iPadOS 26.1, and macOS Tahoe 26.1 Release Candidates

Tuesday October 28, 2025 1:07 pm PDT by
Apple today provided developers and public beta testers with the release candidate versions of upcoming iOS 26.1, iPadOS 26.1, macOS Tahoe 26.1, tvOS 26.1, watchOS 26.1, and visionOS 26.1 updates for testing purposes. The RCs betas come a week after Apple released the fourth betas. The new betas can be downloaded from the Settings app on a compatible device by going to General > Software...
M6 MacBook Pro Feature 1

M6 MacBook Pro: Release Date, Pricing, and What to Expect

Monday October 27, 2025 9:15 am PDT by
Apple this month refreshed the 14-inch MacBook Pro base model with its new M5 chip, and higher-end 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips are expected to follow in early 2026. However, these machines will represent the final update to the current design, with Apple reportedly developing a completely new version of the MacBook Pro packed with next-generation hardware...
macos tahoe

Here Are Apple's Release Notes for macOS Tahoe 26.1

Tuesday October 28, 2025 1:21 pm PDT by
Apple today provided developers and public beta testers with the release candidate version of macOS Tahoe 26.1, which means the update will likely see a public launch next week. The release candidate includes notes on what's in the update, so we have a full picture of the new features that Apple has included. macOS Tahoe 26.1 adds AutoMix support over AirPlay, improved FaceTime audio...
iPhone Car Key Kia

Another Vehicle Brand Gaining iPhone Car Keys Support

Tuesday October 28, 2025 5:27 am PDT by
Apple is preparing to bring support for its digital car key feature to Jetour vehicles, according to evidence uncovered on Apple's backend by MacRumors contributor Aaron Perris. Introduced in 2022, Car Keys allows an iPhone or Apple Watch to unlock a vehicle through the Wallet app. A digital version of a car key is stored in Wallet, and unlocking can be done by holding an Apple Watch or...
iPhone 17 Pro Cosmic Orange

8 Reasons to Wait for Next Year's iPhone 18 Pro

Thursday October 30, 2025 4:42 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
ipad mini 7 feature blue

OLED iPad Mini: Release Date, Pricing, and What to Expect

Wednesday October 29, 2025 7:13 am PDT by
Rumors are stoking excitement for the next-generation iPad mini that Apple is reportedly close to launching. So what should we expect from the successor to the iPad mini 7 that Apple released over a year ago? Read on to find out. Processor and Performance Apple is working on a next-generation version of the iPad mini (codename J510/J511) that features the A19 Pro chip, according to...

Top Rated Comments

kasei Avatar
44 months ago
Cancelled and not going back. The fact they charge extra for 4K content is a joke.
Score: 51 Votes (Like | Disagree)
cjgrif Avatar
44 months ago
$5/month, with ads, 360p, only a half stream at a time (your choice - right half or left half of each frame) /s
Score: 41 Votes (Like | Disagree)
Spaceboi Scaphandre Avatar
44 months ago
Remember when Netflix and other subscription services were cheaper than cable while still not having ads? Those were the days
Score: 33 Votes (Like | Disagree)
vipergts2207 Avatar
44 months ago
Ah yes, the account sharers. That’s it. It couldn’t possibly be the ever increasing price coupled with the deteriorating catalog of quality content to watch.
Score: 27 Votes (Like | Disagree)
Dan From Canada Avatar
44 months ago
My daughter attending university on the other side of the country used our family account.
We have since cancelled Netflix because of "sharing".
Score: 19 Votes (Like | Disagree)
AppleInLVX Avatar
44 months ago
Pfft. The day I pay anyone to show me ads.
Score: 19 Votes (Like | Disagree)