After resisting advertising for years on its streaming services, it finally gave in to the temptation. NetflixReed Hastings, co-CEO of the company said Tuesday that they are now open to lower priced tiers featuring ads.

Although Hastings is opposed to adding advertisements or promotions to the platform, he stated during the prerecorded earnings conference that it was “very sensible” to give customers an option to pay less.

Hastings stated, “Those who are familiar with Netflix know I was against complex advertising. But I’m a big supporter of simple subscriptions.” But as much as that is what I love, it’s not my favorite. I prefer consumer choice. Allowing consumers to choose their price and be advertising-tolerant makes sense.

Hasting stated that the option wouldn’t likely be offered on the service for at least a year. New ad supported tier Netflix sees a great deal of potential profit in this business, and just recently reported that it has made its first quarterly earnings. first subscriber loss in more than a decade Tuesday.

Netflix pointed to growing competition from streaming services launched by other entertainment companies as well rampant password sharing and inflation as reasons for its recent slowdown in paying subscriptions.

Netflix is increasing its content expenditure, especially for originals, in an attempt to get more subscribers. Netflix has increased the price of its service to pay for this. According to the company, the increase in prices is helping to boost revenues, however, it was partially responsible for the 600,000 subscriber loss in Canada and U.S.A during the latest quarter.

An option at a lower level that contains advertisements might be attractive to price-conscious customers and could provide Netflix with another avenue for raising funds.

Hulu’s success is evident. Disney does it. “HBO did it,” Hastings stated. “I don’t believe we can have much doubt it works,” Hastings said.

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