Netflix’s upcoming ad-supported tier might not show commercials on all the content included in the cheaper subscription plan. A report from Bloomberg suggests that Netflix may cut commercials from newer original films, as well as certain kids’ shows.
According to Bloomberg, Netflix may not run ads during original movies when they’re first released, and will instead insert ads at a later date. It’s still too early to tell how long Netflix will show a newer movie without ads, but as noted by Bloomberg, this decision may help alleviate some of the concerns filmmakers might have about ads detracting from their work.
Netflix original kids’ programming will also reportedly get the ad-free treatment — just like Disney Plus plans on doing with its forthcoming ad-supported tier — and the same may go for content produced by outside studios as well. As pointed out by Bloomberg, some studios might not allow Netflix to run ads during certain and shows or movies licensed to the company, but Netflix could get around this by playing ads before or after the program.
“We are still in the early days of deciding how to launch a lower priced, ad supported option and no decisions have been made,” Netflix spokesperson Kumiko Hidaka said in a statement to The Verge.
Netflix’s ad-supported tier is coming in early 2023
According to Bloomberg, some of the content licenses Netflix has right now might not cover the showing of a certain film or movie with ads. As a result, Netflix could end up paying anywhere between 10 and 15 percent “of the current value of the deals to secure the rights.”
Netflix confirmed that it’s planning to launch a new ad-supported tier months after reporting a loss in subscribers for the first time in over a decade. Since then, details about Netflix’s new plan, which is supposed to arrive in early 2023, have slowly trickled out.
In July, Microsoft announced it’s 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 won’t have all the content currently offered by Netflix at launch. It likely won’t let you download any of the movies or TV shows for offline viewing either, as indicated by code in the Netflix app.
Disclosure: The Verge recently produced a series with Netflix.
Update August 22nd, 2:33PM ET: Updated to add a statement from a Netflix spokesperson.