Netflix Confirms That Its Ad-Supported Plan Won't Include All Content: Everything You Need to Know

Netflix Confirms That Its Ad-Supported Plan Won't Include All Content: Everything You Need to Know ...

Netflix is thought to be in negotiations with Hollywood Studios to place content on its cheaper advertising-supported plan soon. The online streaming platform has recently announced that it would launch the ad-supported subscription plans soon, which is said to be in use on the platform in early 2023.

During Netflix's recent earnings call, Ted Sarandos, the CEO, stated, "The vast majority of what people watch on Netflix we can include in the ad-supported tier." There are some things that are in discussions with the studios on. But if we launch the product today, the members of the ad tier will have a great experience. And we will clear some additional content, but certainly not all of it.

Netflix announced that it has selected Microsoft as its technology and sales partner for its ad-supported subscription program this week. Through this endeavor, the streaming company intends to alleviate subscriber stagnation by implementing a lower-cost solution.

Netflix's executives did not mention the studios they are in discussions with, according to the Wall Street Journal. However, the company is still working to reach out to Warner Bros, Universal, and Sony Pictures.

Netflix also dropped almost 1 million subscribers in the spring, putting pressure on household budgets and increasing inflation, thus increasing the urgency behind the development of a lower-cost alternative with commercial interruptions.

The 970,000 accounts shrinking from April to June, announced Tuesday as part of Netflix's second-quarter earnings report, is by far the largest monthly subscriber loss in the company's 25-year history.

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