Skip to main content

Netflix’s ad-supported tier will start with a big drawback

Netflix first announced plans for an ad-supported version of its streaming service several months ago, though details about it have been scant.

But during an earnings call on Tuesday, Netflix co-CEO and chief content officer Ted Sarandos revealed that Netflix’s ad-based tier will not include all of its licensed content at launch.

Recommended Videos

In other words, those who go for the ad-supported tier will not have access to Netflix’s entire library of movies and shows. It’s not because Netflix doesn’t want to offer that content, but because its current licensing terms with studios prevent it from sharing that content on a tier that includes ads.

Speaking about the upcoming ad-supported tier during Tuesday’s earnings call, Sarandos said: “Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier.”

He added that while some content cannot be included at launch, the company is “in conversations with the studios” to try to fix that.

“If we launched the product today, members in the ad-tier would have a great experience,” the Netflix executive insisted. “We will clear some additional content but certainly not all of it.”

Also, the ad-supported tier will not be free, but instead be offered at “a lower price,” Sarandos said recently. Pricing for the service has yet to be revealed, though obviously, it’ll cost less than Netflix’s $10-per-month, ad-free Basic plan.

The company hasn’t shared a launch date for the ad-supported version of its streaming service, though recent reports have suggested it will land early next year, with the help of Microsoft.

Sarandos’s comments came as Netflix released its latest set of financial figures that showed the company pulling in a profit of $1.4 billion for the second quarter of 2022. It also lost a million subscribers in that period, though it expected to lose twice that. Things look a little brighter going forward, however, with forecasts suggesting the service will start gaining members again after losses over two quarters in a row, with a million new ones expected to sign up.  Netflix currently has around 222 million users globally.

Trevor Mogg
Contributing Editor
Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…
The best Netflix original series right now
A man and woman sit on a couch.

While 2024 has been a quiet year by the standards of Netflix's programming, October has an embarrassment of riches when it comes to original series. Nobody Wants This has been a breakout hit, while Outer Banks and The Lincoln Lawyer returned for their fourth and third seasons, respectively.

That's a great way to head into the final two months of 2024. And even if November and December can't deliver a lineup to match that trio of shows, the rest of the best Netflix original series can keep you binge-watching for a long time to come.

Read more
5 movies leaving Netflix in October 2024 you have to watch now
Emma Stone and Ryan Gosling dancing in La La Land.

Netflix's television slate has been excellent in October. Outer Banks season 4 returned earlier this month, while The Diplomat season 2 returns on October 31. Reality fans were happy to see Love Is Blind season 7 return to Netflix. Make sure to tune into the finale on October 30 for an in-depth breakdown of all the drama.

On the movie side, Netflix will ramp up its Oscars slate in November and December with Emilia Pérez and The Piano Lesson. However, the end of October means several movies will be departing Netflix for the foreseeable future. Make sure to watch these movies before the month ends. Our recommendation includes a delightful A24 love story, a family-friendly adventure, and a dazzling musical.

Read more
Everything coming to Netflix in November 2024
A man sits in a car in SEnna.

Arcane: Season 2 | "Come Play" | Series Trailer | Netflix

November 1 usually elicits some mixed emotions for most people. Gone is spooky season and all the candy and costumes that go along with it. What lies ahead are travel plans for nervous family members in preparation for Thanksgiving and an intimidating American football schedule that can make even non-fans sweat a bit.

Read more