Bloomberg claims that Netflix may decide not to show advertisements during its original movies when they are initially aired, but to do so afterwards. It’s too soon to say how long Netflix will screen a more recent picture without advertisements, but as highlighted by Bloomberg, this choice may allay some of the worries that filmmakers may have about advertisements detracting from their work.
Similar to what Disney Plus intends to do with its upcoming ad-supported tier, Netflix original children’s programming will apparently also get the ad-free treatment. The same may be said for material created by independent studios. Bloomberg said that certain studios may not let Netflix to display advertisements during specific episodes or movies that the firm has been permitted to produce, but the company might get around this by showing advertisements before or after the program.
Netflix spokesman Kumiko Hidaka told the media that “we are currently in the early stages of determining how to introduce a lower cost, ad supported alternative and no decisions have been taken.”
Bloomberg claims that certain of the content licenses Netflix now has may not permit the screening of a particular movie or a movie including advertisements. In order to get the rights, Netflix may have to pay anywhere between 10 and 15 percent “of the existing value of the agreements.”
Months after announcing a membership loss for the first time in more than ten years, Netflix acknowledged that it is preparing to introduce a new ad-supported tier. Since then, information about Netflix’s new strategy, which is scheduled to launch in early 2023, has been steadily leaking out.
The infrastructure for Netflix’s ad-supported tier will be provided by Microsoft, according to a July announcement. Later, co-CEO Ted Sarandos of Netflix said that not all of the existing Netflix content will be available at launch for the ad-supported tier. Code in the Netflix app suggests that you won’t be able to download any of the movies or TV series for offline watching either.