Netflix Leak Has Good News About Ad-Supported Streaming Plan
Subscription-based companies like Netflix are also starting to use that strategy to make their products more attractive, but it seems that those on the company’supcoming ad-supported tierwon’t have to worry about being bombarded with disruptive commercials all the time. After a series of rumors, Netflix confirmed earlier this summer that it is indeed developing a more affordable subscription tier for its video streaming service that will be partly subsidized with ads. This plan won’t be completely free, of course, but it could still be cheaper than the platform’s base price of $9.99 per month. The company’s still in the early process of establishing this plan, though, and it’s still trying to strike deals with all of the content publishers involved.
Ad-free content on Netflix’s ad-supported tier
Netflix original movies won’t show commercials either, at least according to the insiders, but only when they’re first released. The report doesn’t say how long this ad-free treatment will last, but those films will reportedly eventually show ads, as well. This strategy is reportedly to placate some filmmakers and studios when debuting their movies on Netflix on both paid and ad-supported tiers — after all, can you imagine your cinematic viewing experience being interrupted by ads on a film’s red carpet debut? Movies from other studios, however, will allegedly still have to be negotiated independently, which could cost Netflix no small amount.
All of these, however, are still part of that early planning stage that Netflix likes to warn people about. In this industry, it’s not as easy as simply flipping a switch to make that ad-supported tier happen. Netflix will have to tread carefully and negotiate with partners, particularly when it comes to increasing its premium for the license to show ads with content. If Netflix fails to get enough content to fill up a substantial library to make the ad-supported tier attractive, it might end up scrapping the plan altogether.
