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Netflix confirms it's adding ads to its service

After years of resisting commercials, Netflix will introduce an ad-supported, lower-priced subscription tier soon.

LOS GATOS, Calif. — After years of resistance, Netflix confirms it will introduce commercials to its service.

The company's co-CEO, Ted Sarandos, announced Netflix will begin testing an ad-supported tier that comes at a lower price. They didn't reveal what the cost will be.

RELATED: Do you watch Netflix for free with a shared password? That may be about to end.

Netflix's announcement comes after the entertainment service's subscriber numbers dipped for the first time in a decade. It also faced backlash for cracking down on password sharing and laying off 300 employees in June.

In April, Netflix's co-CEO Reed Hastings said that it would be a year or two before commercials are added.

RELATED: Netflix just lost a bunch of subscribers, predicts it's going to get much worse

A New York Times report from May shows that Netflix actually told its employees that the ad-supported plan could launch before the end of 2022.

Netflix hopes to earn more revenue by adding commercials. Competitors Hulu and HBO Max already offer cheaper plans with commercials included. Disney+ is expected to follow the trend.

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