The upcoming ad support level of Netflix may not show ads everything the content included in the cheaper subscription plan. Report from Bloomberg suggests that Netflix may cut ads from newer original movies as well as certain children’s shows.
According to Bloomberg, Netflix may not run ads during original movies when they are first released and will instead insert ads at a later date. It’s still too early to say how long Netflix will show a newer movie without commercials, but as noted by Bloombergthis decision may help alleviate some of the concerns filmmakers may have about ads distracting from their work.
Netflix’s original children’s programming will also reportedly get the ad-free treatment — just as Disney Plus plans to do with its upcoming ad-supported tier — and the same could be true of content produced by outside studios. As pointed out by Bloombergsome studios may not allow Netflix to run commercials during certain shows or movies licensed to the company, but Netflix can work around this by running commercials before or after the program.
According to Bloomberg, some of the content licenses that Netflix currently has may not cover the showing of a certain movie or movie with ads. As a result, Netflix could pay anywhere between 10 and 15 percent “of the current value of the deals to secure the rights.” Netflix did not immediately respond On the edgerequest for comment.
Netflix has confirmed plans to launch a new ad-supported tier, months after it reported losing subscribers for the first time in more than a decade. Since then, details about Netflix’s new plan, which is due to arrive in early 2023, have slowly trickled out.
In July, Microsoft announced that it was partnering with Netflix to provide the infrastructure that powers the streamer’s ad-supported tier. Netflix co-CEO Ted Sarandos later said the ad-supported tier would not have all the content currently offered by Netflix at launch. It also probably won’t let you download any of the movies or TV shows for offline viewing, as indicated by the code in the Netflix app.
Disclosure: On the edge recently produced a series with Netflix.