According to Netflix's CEO, the company is ready to offer lower prices with ads as it loses subscribers.

From CEO in the interview  

“Those who follow Netflix know that I was against the complexity of advertising and a big fan of the simplicity of the subscription,” co-CEO Reed Hastings said in a revenue interview Tuesday." But since I'm a fan of it, I'm a big fan of consumer choice, and it makes a lot of sense to allow consumers who want to get a lower price and have ad-tolerance to get what they want," he said.

Open to offering lower prices  

"We're looking at it now, and we'll be trying to figure it out in the next couple of years. But just think, we're very open to offering low prices with advertising as a consumer choice."

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Best capitalism  

In September 2020, Hastings said that the company's lack of advertising was "excellent capitalism" instead of theoretical opposition to advertising.

Lost 2 million subscribers  

The change comes as Netflix claims to have lost 200,000 subscribers in its first quarter - the first decline in the streaming service since 2011. Netflix's share price is down 40% per year. "It's clear it works for Hulu. Disney does it. HBO did," Hastings said. "I don't think we have a lot of doubt that this will work."

Netflix could make $9 billion a year

Needham analysts estimated in a January 21 investor note that Netflix could earn $ 9 billion a year by adding ads. Netflix last raised prices in January. A basic plan now costs $ 9.99, a standard plan $ 15.49, and a premium plan $ 19.99.