Netflix recently announced that it was working on an ad-inclusive plan which will be offered at a lower price. The company partnered with tech giant Microsoft to run the ads on some of its subscription plans. Although the streaming company did not offer details on the package, Netflix confirmed during its Q2 2022 earnings call that the ad-supported plan would not feature the full list of content in its catalog.
During an Interview, Netflix CEO Ted Sarandos said that although the ad-supported plan will contain many of the movies in the streaming company’s catalog, some will remain exclusive to customers who pay for a higher subscription.
“There are some things that won’t—that we’re in a conversation about with the studios on—but if we launched the product today, the members in the ad tier would have a great experience,” Sarandos said. “We will clear some additional content, but certainly not all of it.”
The streaming company said in June that the ad-supported plan was an option for users who did not wish to pay for the plans which start from Sh700 for the basic package.
Netflix has experienced a plunge in subscriptions this year occasioned by stiff competition from rivals Amazon, HBO, Disney, and Hulu. Apart from enhancing its content offering, the company hopes to attract more subscribers through the introduction of more affordable options on the platform. The ad-supported tier is set to roll out in January 2023.