Netflix’s upcoming ad-supported tier may not show commercials on all the content included in the cheaper subscription. A report of Bloomberg suggests that Netflix may remove commercials from newer original movies and certain children’s programs.
According to BloombergNetflix may not show ads during original movies when they are first released, and will instead insert ads at a later date. It’s too early to say how long Netflix will show a newer ad-free movie, but as noted by Bloombergthis decision may allay some of the concerns filmmakers have about ads compromising their work.
Netflix’s original children’s programming will reportedly also receive the ad-free treatment — just as Disney Plus plans to do with its upcoming ad-supported tier — and the same could be true for content produced by third-party studios. As indicated by BloombergSome studios may not allow Netflix to run ads during certain shows or movies licensed to the company, but Netflix can get around this by running ads before or after the program.
According to Bloomberg, some content licenses that Netflix currently holds may not cover the showing of a particular movie or movie with ads. As a result, Netflix could pay between 10 and 15 percent “of the current value of the deals to secure the rights.” Netflix did not immediately respond The edge‘s request for comment.
Netflix has confirmed it plans to launch a new ad-supported tier for months after it reported a loss of subscribers for the first time in more than a decade. Since then, details about Netflix’s new plan, which should be released in early 2023, have been slowly trickling out.
In July, Microsoft announced it was partnering with Netflix to provide the infrastructure that powers the streamer’s ad-supported layer. Netflix co-CEO Ted Sarandos later said the ad-supported tier won’t have all the content currently offered by Netflix at launch. You also probably won’t be able to download movies or TV shows for offline viewing, as indicated by the code in the Netflix app.
Revelation: The edge recently produced a series with Netflix.
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