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JAKARTA – The upcoming ad-supported subscription version on Netflix may not show ads on all content included in the cheaper subscription plans. A report from Bloomberg suggests that Netflix may cut ads from newer original films, as well as certain children's shows.

According to Bloomberg, Netflix may not run ads for as long as the original film is first released, and will instead insert ads at a later date. It's too early to say how long Netflix will be showing new movies without ads, but as Bloomberg notes, this decision could help ease some of the concerns filmmakers have about advertising reducing the value of their work.

Original kids programming on Netflix is also reportedly getting the ad-free treatment – as Disney Plus plans to do with its upcoming ad-supported tier – and the same may be true for content produced by outside studios as well.

As Bloomberg points out, some studios may not allow Netflix to run ads during certain shows and/or movies licensed to the company, but Netflix can work around this by playing ads before or after the program plays.

According to Bloomberg, some of Netflix's current content licenses may not cover viewing certain movies or movies with ads. As a result, Netflix may end up paying between 10 and 15 percent "of the current transaction value to secure rights." Netflix did not immediately respond to a request for comment from The Verge on the report.

Netflix confirmed that it plans to roll out a new ad-supported subscription feature months after it reported losing subscribers for the first time in more than a decade. Since then, details about Netflix's new plans, which were supposed to arrive in early 2023, have slowly come out.

In July, Microsoft announced it was partnering with Netflix to provide infrastructure that supports streamer ad-supported tiers. Netflix co-CEO Ted Sarandos later said the ad-supported subscription version would not have all of the content currently offered by Netflix at launch.

Most likely users will not be able to download any movies or TV shows to watch offline, as the code in the Netflix app indicates.


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