Netflix Inc (NFLX.O) is in negotiations with multiple companies about advertising agreements, co-CEO Ted Sarandos said on Thursday, as the streaming behemoth tries to boost subscriber growth by introducing a cheaper package with advertisements.
According to media reports earlier this week, it was in talks with Alphabet Inc’s (GOOGL.O) Google and Comcast Corp’s (CMCSA.O) NBCUniversal about prospective marketing alliances.
“We’re talking to all of them right now,” Sarandos said at the Cannes Lions conference when asked which company Netflix was looking to partner with.
Netflix announced in April that it was seriously considering advertising after losing subscribers for the first time in a decade and expecting a 2 million drop in the upcoming quarter.
“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’,” Sarandos said at Cannes Lions.
As the initial boom in streaming fades, competition intensifies, and increasing inflation cuts consumer spending on entertainment, Netflix’s most competitive rival, Walt Disney Co’s (DIS.N) Disney+, has also stated it will provide an ad-supported tier.
