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The giant Netflix, which has laid off 450 employees in two categories so far, will launch an ad-supported platform at the end of the year to reduce its losses and bring more users to the platform. Netflix Co-CEO Ted Sarandos confirmed during a Cannes Lions advertising ceremony that the future of the giant broadcaster would include commercials, reports the Hollywood Reporter. “Add an ad category. We do not add ads to Netflix as you know today.
Sarandos has confirmed that the streaming service is in discussions with potential advertising partners.
As the price of the company increased, there was growing speculation that Netflix could soon be acquired.
Sarandos conceded that shopping “is always a reality, so we have to look at that”.
However, he stressed that “we have a lot of value and profit and free cash flow to continue to grow this business”.
Its rivals Disney Plus also plans to launch a similar advertising campaign at the end of the year, starting with the US, before traveling around the world.
Netflix saw its stock drop 20 percent after it reported losing 2 lakh paid subscribers in the first half of 2022, losing its first subscribers in more than a decade.
In addition, it now predicts a loss of 20 lakh registered subscribers worldwide for the quarter of April-June (Q2).
After retrenching 150 workers recently, the popular video streaming platform once again showed the door to exit 300 more workers in the second retrenchment round.
Reductions are found in many business ventures in the company, with a lot of job losses in the US.
The court has indicated that further demolition rounds will come this year.