A cheaper Netflix subscription tier is now under development, as confirmed by the company's co-CEO, Ted Sarandos. 

(Photo : Photo by OLIVIER DOULIERY/AFP via Getty Images)
In this photo illustration a computer screen and mobile phone display the Netflix logo on March 31, 2020 in Arlington, Virginia. - According to Netflix chief content officer Ted Sarandos, Netflix viewership is on the rise during the coronavirus outbreak. (Photo by Olivier DOULIERY / AFP)

He confirmed this detail during his appearance at the recent Cannes Lions advertising festival. Before his announcement, various rumors already hinted at the arrival of the more affordable version of Netflix. 

However, the video streaming giant did not confirm it until now. As of writing, the cheapest tier of Netflix costs $9.99 per month (basic plan). 

Meanwhile, the most expensive one costs $19.99 every month (premium plan). Once the new cheaper tier arrives, you will have another option when subscribing to Netflix. 

Cheaper Netflix Subscription Tier Confirmed by Co-CEO

According to XDA Developers' latest report, Sarandos said that Netflix would really introduce a more affordable Netflix subscription. 

(Photo : Photo by Mario Tama/Getty Images)
The Netflix logo is displayed at Netflix's Los Angeles headquarters on October 07, 2021 in Los Angeles, California. The IATSE union which represents Hollywood’s film and television production crews voted to authorize a strike, calling for better working conditions and higher pay amid a surge in streaming demand. Negotiations are ongoing but a strike may be imminent.

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But, there's a catch. The co-CEO added that the new tier will now have ads, which is quite unusual for the streaming giant since it has been promoting ad-free streaming services. 

"We've left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don't mind advertising," said Sarandos. 

As of writing, Netflix hasn't confirmed yet if the new tier will be a cheaper version of the basic, premium, or standard plan. 

Meanwhile, the Deadline reported that the new Netflix sub-plan would feature short advertisements. If this is true, then the cheaper version may not be that bad since its ads will be tolerable.

What Can You Do With Netflix Ads? 

Rumors stated that there's something you can do if you are worried about the ads of the new cheaper Netflix tier. They claim that users who opt for the upcoming version can limit the appearance of advertisements. 

If not, Sarandos clarified that the Netflix ads would not be introduced across the board. You can click this link to see further details. 

Previously, the Netflix Mystery Box feature arrived. 

On the other hand, Netflix's password-sharing tech didn't work out in Peru.

For more news updates about Netflix and its upcoming cheaper tier, always keep your tabs open here at TechTimes. 

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Written by: Griffin Davis