Netflix is considering putting advertising on its service and lowering its fees after losing 200,000 customers for the first time in 11 years.

Netflix, the online entertainment subscription service, has said that it is considering lowering its fees and adding advertisements to its platform, following a 200,000-subscriber loss for the first time since 2011.

Netflix co-CEO Reed Hastings stated on Tuesday, April 19, that the firm is “open” to offering lower-priced tiers with commercials after years of opposing them on its streaming service.

Hastings has previously opposed introducing advertisements or other promotions to the site, but now believes it “makes a lot of sense” to provide users with a less expensive option.

“Those who have followed Netflix know that I have been a strong advocate of the simplicity of membership and have been against the complication of advertising,” Hastings stated.

“However, as much as I enjoy that, I prefer consumer choice, and letting consumers who want a cheaper price and are tolerant of advertising to get what they want makes a lot of sense.”

Netflix, which suffered its first subscriber drop in more than a decade on Tuesday, said a new ad-supported tier offers a lot of economic potential, according to Hastings.

Netflix attributed the decline in paid memberships to its exit from the Russian market, increased competition from Disney and Amazon’s recent streaming releases, widespread password sharing, and inflation.

Netflix has upped its content spending, notably on originals, in order to attract more members. The company claims that in order to pay for it, it has to raise its service costs.

According to Netflix, a lower-tier alternative with adverts might keep some price-conscious customers on board while also providing the company with a new revenue stream.

“It’s evident that it’s paying off for Hulu. It’s being done by Disney. HBO pulled it off.” According to Hastings. “I don’t think there’s any doubt in my mind that it works.”

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