Not every show on Netflix will be part of the platform’s pending ad tier.
“Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier,” Sarandos said.
“There’s some things that don’t and we’re in conversations with the studios on, but if we launched the product today, members in the ad-tier would have a great experience,” he continued. “We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business.”
Squid Game.Noh Juhan/Netflix
Because Netflix’s own series aren’t licensed from a third party, subscribers can expect any and all Netflix-created entertainment — fromStranger ThingstoSquid Game— to fall within the newly monetized content. Therefore, all Netflix programming should still be accessible, even at a lower subscription price.
Subscribers still have time before Netflix launches the Microsoft-fueled ad tier. It’s expected to roll out sometime inearly 2023.
In June, Sarandos confirmed the long-rumored ad tier would eventually be coming to Netflix. The reason: as Netflix increases subscription prices, the platform sees an opportunity for lower subscription fees, if a patron is willing to watch ads.
“We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” Sarandos said during a panel at the Cannes Lions Festival, according toThe Hollywood Reporter.
“We adding an ad tier; we’re not adding ads to Netflix as you know it today,” he added. “We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'”
Netflix users will still be able to subscribe to an ad-free tier at a higher price.
The ad tier announcement followed news that Netflixlost 200,000 subscribersin its last quarter, as well as amid a crackdown on Netflix userssharing accountsacross households.
The streamerrecently lost nearly 1 million paid subscribersin the June quarter.
source: people.com
