Streaming giant Netflix is considering lower-priced packages supported by advertisements.

On Tuesday, co-CEO Reed Hastings addressed staff at an earnings conference call. He said it “makes a lot of sense” to offer customers cheaper options.

“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Mr 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.”

Mr Hastings’ comments come as the streaming giant recorded its first subscriber loss in a decade. 

On Tuesday, Netflix reported a loss of 200,000 subscribers during the first quarter of the year, with its shares tanking over 25 per cent hours after the report.

The company forecast a global paid subscriber loss of two million for the second quarter. The last time Netflix lost subscribers was October 2011.

“Our revenue growth has slowed considerably,” the company wrote in a letter to shareholders. “Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally.”

It noted that the suspension of its services in Russia because of the war resulted in a loss of 700,000 subscribers. 

The company said it would have seen 500,000 net additions to its subscriber strength if it did not crack down on Russia’s services. 

In the letter, Netflix noted competition from recent streaming launches by other entertainment companies and password sharing for the recent stall in paid subscriptions.