According to the report, although Netflix is about to launch a lower-priced ad-included subscription package, it may not display ads in all content of this package and may cut ads from newer homemade movies, as well as some children’s shows.
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It is reported that Netflix may not put advertisements in the first release of self-made films, but will insert advertisements at a later stage. While it’s hard to tell how long Netflix’s new ad-free movies will run, the decision could help ease filmmakers’ concerns that ads could distract viewers.
Similar to Disney+, Netflix’s self-produced children’s shows may also receive ad-free treatment, as may children’s content produced by outside studios. According to reports, some studios may not allow Netflix to include commercials in shows or movies licensed to the company, but Netflix may compromise with intro or end credits.
According to reports, some of the film and television program licenses currently held by Netflix may not include advertising rights. As a result, the company ends up paying 10% to 15% of the current deal value to secure advertising rights. Netflix had no immediate comment.
Netflix confirmed after its first subscriber decline in more than a decade that the company will launch a monthly subscription plan monetized through advertising. Since then, details about Netflix’s new monthly plan have gradually emerged. At present, this package may be officially launched in early 2023.
In July, Microsoft announced a partnership with Netflix to provide infrastructure support for the ad-supported streaming service. Netflix co-CEO Ted Sarandos later said that the ad-supported monthly service would not include all the content Netflix currently offers at launch, and would likely not allow users to download all of the movies and TV shows they wanted to.
