Netflix is preparing a cheap ad-supported plan to stop the drop in subscribers. However, this, which would only arrive in 2023, will not have all the content that the platform currently offers, at least at first. The reason? Contracts with studios.
“We can include the vast majority of what people watch on Netflix on the ad-supported plan. There are some things that don’t, and we’re talking to the studios. But if we launch the product today, the ad tier members will have a great experience. And we will remove some extra content […] certainly not everything, but do not think that it is a major obstacle for the business”, assured Ted Sarandos, CEO of Netflixas collected TechCrunch.
That is, users who opt for this plan when it is launched they will be able to enjoy all the content produced by Netflix, but not the one that has been developed or contracted to studios. This is because the contracts that were made were not linked to . However, this would only be at the beginning, because, as Sarandos says, the company is looking for a way to include them.
What are the studios with which Netflix has to negotiate?
In accordance with The Wall Street Journalthe biggest studios you find yourself in conversation with Netflix son Warner Bros. y Universal. That is, users, until now, might not watch the series “You”, “Russian Doll”, “The Crown” or “Cobra Kai”, among others.
In addition to these series released exclusively on Netflixyou would also not be able to access ‘Breaking Bad’, for example, or ‘NCIS’, which are from Sony y Paramount, respectively. “We are still in the early days of deciding how to launch a lower priced ad-supported optionand no decision has been made”, Said a spokesman for the streaming platform to the North American media.
Netflix made the contracts with the studios before deciding to launch a new ad-supported plan. For this reason, the documents did not stipulate that the company generate revenue from advertisements during the reproduction of series or films from other studios. The streaming giant has already partnered with Microsoft to generate this new subscription and is working to allow users to access all content, regardless of the plan they choose.
