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Netflix Plans Lower-Priced Service With Ads, Marking Big Shift

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WATCH: Netflix lost 200,000 customers in the first quarter, the first time it has shed subscribers since 2011. Source: Bloomberg

Netflix Inc. plans to create a lower-priced version of its service that has advertising, a big change for the company after years of only offering its movies and TV shows commercial free.

Co-Chief Executive Officer Reed Hastings brought up the potential for advertising on a call Tuesday with investors, after Netflix posted a loss of 200,000 customers in the first quarter -- the first such decline in a decade -- and forecast a further drop of 2 million this quarter.