A short time ago, we learned about Netflix’s proposal to incorporate a new plan, cheaper and supported by advertising.
Newly disclosed details revealed that this new offering will not include all the content currently viewable on the streaming service, Netflix executives said during the company’s second-quarter 2022 earnings call.
Limited catalog on the plan with Netflix ads
“Today, the vast majority of what people watch on Netflix, we can include at the ad-supported level,” said Netflix co-CEO Ted Sarandos. “There are some things that we’re not, that we’re talking to the studios about, but if we launched the product today, members at the ad level would have a great experience. We will clean up some of the additional content, but certainly not all of it, but we don’t think it will be a material deterrent to business.”.
“Certainly good to have”said Netflix CFO Spencer Neumann. “But it is not essential. As Ted says, we can release today without any additional content release rights. Hopefully we can complement that, but we will be disciplined in what we do.”.
We’ll have to wait and see exactly what’s missing from the ad-supported tier, which Netflix said Tuesday it intends to launch in early 2023. The next tier wouldn’t be very appealing if you couldn’t watch hits from Netflix, like its original movies and series or well, those that are in trend.
The reason behind the restrictions in the catalog that would fall on this type of subscription, according to what was indicated in the last quarterly report, lies in the contracts linked to each of the titles contained in the Netflix catalog. Distribution agreements are made under certain terms and with certain projections. The arrival of a new plan or a new modality of use of the platform, outside its official model, must go through, in addition to the entire internal process of preparing the platform, the regulation of its diffusion permits.
