Netflix is in talks with several companies for advertising partnerships.
The streaming platform has reportedly met with Google, NBCUniversal and Roku to discuss potential ad sales and marketing partnerships.
"We're talking to all of them right now - they all have different solutions," said Ted Sarandos, co-chief executive officer and chief content officer for Netflix,.
He was speaking at the Cannes Lions stage in response to questions by Sway podcast host Kara Swisher.
The company has reportedly brought forward plans for an advertising supported version of its global streaming media platform. A note to Netflix employees says ads may come by the end of 2022
Netflix, after losing subscribers for the first time in a decade and projecting a 2 million decline in the upcoming quarter, said in April that it was looking at advertising to attract a wider audience.
And this could help growth in a weaker economy. Consumers manage household budgets carefully when inflation rises and wages stagnate. It is an easy decision to cut a streaming subscription (for example to two from three) when grocery bills surge higher.
“We’ve left a big customer segment off the table, which is people who say: 'Netflix is too expensive for me',” Sarandos said in Cannes.
"We're not adding ads to Netflix - we're adding an ad tier for folks who say 'I want a lower price and I'll watch ads'.”
By rolling out a cheaper subscription plan with ads, analysts predict that the potential return could exceed $1.2 billion.
That isn't quite as much as Disney+ which could rake in an estimated $1.8 billion.
When asked about the roll-out plan Sarandos said: “We’re a little bit away from talking about details about the launch.
“But what I will say for sure is what we’ll do first is not representative of what the product will ultimately be - start light, keep it simple and iterate fast.
“I want our product to be is better than TV, so when I think about how ads are currently served on streaming … I think there’s a lot more work to be done there.”
As the first appearance of Netflix at Cannes Lions, it’s a clear sign the company is looking to embrace advertising.
However, on the same day Netflix let go of around 300 employees. “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth,” Netflix said in a statement.
Such layoffs add to the growing speculation that the platform could be the target of a takeover.
Addressing the buy-out concerns, Sarandos admitted “it’s always a reality, so we have to be wide-eyed about that” but insisted Netflix could return to growth on its own.
“We have plenty of scale and profitability and free cash flow to continue to grow this business.
“We’ve gotten through experiences where the market disconnects from core business and you have to prove the thesis still works, and is going to work long-term.
“There’s a lot of uncertainty in the world today, and if they get anything that rocks the foundation of the narrative, they get nervous.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.