Netflix Confirms Some Licensed Shows Won’t be Available on Ad-Supported Tier
Netflix has just released its Q2 2022 earnings report. As part of it, the streamer further discussed its plans to roll out an ad-supported tier. However, it’s said that while original content will be available, some licenced shows won’t be.
During the earnings call, Co-CEO and Chief Content Officer Ted Sarandos confirmed the news that Netflix is partnering with Microsoft to power its ad-supported tier designed to offer a new entry-level pricing model. According to Deadline, Sarandos also stated that not all licenced shows and content from the U.S. studios and international distributors will be made available.
However, Netflix is confirmed to be having discussions with its partners and distributors about potential deals it can make to have those shows available on the unreleased tier.
“Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier,” Sarandos said on the earnings call. “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. We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business.”
It’s currently unknown how the ad-supported tier will work exactly. It does appear as though Netflix is taking a page from its competitors like HBO and Disney, both of which offer ad-supported tiers to their streaming services in the U.S. However, as far as a pricing model is concerned, it’s still unknown. However, given competitors like Apple offers their service for a much cheaper $5.99/month, Netlfix may look towards providing a similarly priced tier.