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After years of fighting ad-driven approaches, Netflix is now “open” to providing customers with lower-priced tiers that include ads, according to co-CEO Reed Hastings on Tuesday.

Hastings has always been an enemy of promotional ads on the streaming platform. The co-CEO said that during Netflix’s prerecorded earnings conference call it “makes a lot of sense” to offer clients cheaper subscriptions. 

“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said. “But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”

The option likely wouldn’t be available on the service for a year or two, Hastings said. A new ad-supported tier has a lot of profit potential for Netflix, which on Tuesday reported its first subscriber loss in more than a decade.

Netflix argued that the competition is fiercer with rampant password sharing, inflation, and the continuous Russian Ukrainian conflict. 

In an effort to convert more subscribers, Netflix has increased its content spend, particularly on originals. A lower-tier subscription that includes ads could provide Netflix with a new income stream.

“It’s pretty clear that it’s working for Hulu. Disney is doing it. HBO did it,” Hastings said. “I don’t think we have a lot of doubt that it works.”