Netflix’s planned lower-cost, ad-supported subscription tier will reportedly keep ads off of kids’ programming and new movies.
Bloomberg cites “people familiar with the plans” in a report detailing what Netflix programming will (and won’t) have ads. It’s the latest development in the ongoing saga of Netflix’s ad-supported subscription tier. Per Bloomberg’s sources, Netflix has told partners it won’t run ads during original kids’ programs. Moreover, some studios that license Netflix the rights to kids’ programs won’t allow the company to run ads on those programs.
As for movies, Netflix reportedly decided that original moves should stay ad-free, at least for a period of time. This would ease concerns from top filmmakers, who apparently were concerned about ads disrupting the viewing experience.
However, Netflix is still finalizing its plans for the ad-supported subscription. That means details could change before launch, which could be early next year, according to Bloomberg.
Based on what we know so far, Netflix’s ad-supported tier will cost less than its current subscription options but will inject ads into content. Netflix indicated it wants the ad-tier to be an option for cost-conscious customers, and it doesn’t want to put ads into its other subscription tiers. Microsoft is slated to handle the ad technology for Netflix.
Moreover, Netflix has said not all content will be available on its ad-supported tier. This largely comes down to licensing, with Netflix not having the rights to show commercials on some content. Other reports indicated Netflix would remove the ability to download content for offline viewing for the ad-supported tier.
Netflix isn’t the only company working on an ad-supported streaming subscription. Disney is also developing one for Disney+, although it’s unclear if or when it will come to Canada.