Netflix is in a full swing on its bet to start an advertising business inside its platform. After losing 200,000 subscribers during the first quarter of the year, the company is seriously considering a new ad-supported tier as well as creating its own advertising business inside the platform.
According to a report by The Wall Street Journal, Netflix Co-CEO Ted Sarandos confirmed that the streaming company is speaking will all potential partners to help it enter the ad business. The publication writes:
When asked about partnership talks with ad companies on Thursday, Mr. Sarandos replied, “We’re talking to all of them right now. We want a pretty easy entry to the market—which, again, we will build on and iterate in,” he added. “What we do at first will not be representative of what the product will be ultimately. I want our product to be better than TV.”
Netflix Co-CEO says the company will likely start its advertising business with an established player and “if it becomes so important that we want to have control over it, then we might.”
WSJ highlights the important change if Netflix starts offering a new ad-based tier of its subscription. As a matter of fact, the company has taken a long time to address its different offers.
Netflix is currently the only major streaming service to charge extra for 4K content. In addition, even Apple TV+ is inserting personalized ads on its audio visual productions before they begin playing.
During the Cannes Lion conference, the company’s Co-CEO said Netflix wanted to design an ad experience that would be “more integrated and less interruptive” than traditional TV advertising.
With the pace news has been around, it won’t take long until the company unveils its plans for an ad-based tier and its own ad business. 9to5Mac will make sure to report once we hear more about it.