Netflix's Ad-Supported Tier Could Not Cover All Their Shows and Movies

Netflix's Ad-Supported Tier Could Not Cover All Their Shows and Movies ...

Streamers may find that some of their favorite content will not be able to be transferred to the cheaper, ad-supported plan when the new subscription level is launched in early 2023.

According to the Wall Street Journal, Netflix originals such as Stranger ThingsorBridgerton are unlikely to be at risk. However, much of the content licensed and co-produced by U.S. studios and international distributors might be at risk.

Ted Sarandos, the company's co-CEO and chief content officer, said during Tuesdays second quarter earnings call, that the majority of Netflix viewers will today be able to access in the ad-supported version. There are some things that aren't discussed with the studios on, but if we launched the product today, members in the ad-tier would have a great experience.

Sarandos stated that they would remove some or all of its content, but certainly not all of it, and that the company does not believe it is a significant obstacle to the business.

Sarandos announced that the streaming company had lost another 970,000 subscribers in the second quarter, just about a million less than their original forecast of 2 million subscribers in the second quarter.

The decision to adopt an ad-supported program came with the company's first-quarter earnings call, where they reported a subscriber loss of 200,000, their first loss since 2011.

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