Netflix is working on an ad-supported tier, which means the streaming platform will eventually allow ads. Co-CEO Ted Sarandos confirmed this while speaking at the Cannes Lions advertising festival. The move comes after the recent loss of 200,000 subscribers and price increases.

Sarandos suggests that the company has left out a significant customer base who believes the streaming service is too expensive for them. This move comes right after the company reported a loss of 200,000 subscribers in the first quarter of this year, its first subscriber loss in a decade.

In April, co-founder and co-CEO, Reed Hastings, said that the company was exploring introducing ads to the platform. Sarandos clarified that this would be a new tier and that ads aren't taking over the platform, meaning the more expensive plans will likely remain as they are.

A Roku-Netflix partnership would potentially help the streaming platform get a new audience, revenue stream, and infrastructure for the reportedly planned ad-tier service. The company, which makes some of the best streaming devices on the market, actually got its start as a Netflix and was spun off in its early days. Netflix has declined to comment when asked about the potential buyout of Roku by Netflix.
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