In response to subscribers leaving in record numbers, Netflix is doing the unthinkable: introducing adverts.
To be very clear, Netflix is rolling out ads as part of a new, cheaper tier. You won't suddenly find four out of five dentists recommending Colgate in between episodes of Better Call Saul if you're already paying for a regular subscription. This is Netflix attempting to offer a cheaper option - but this of course comes with the compromise of having to sit through ads.
What kind of ads we'll be seeing as part of this new subscription tier remains to be seen. What we do know is that Netflix has partnered with Microsoft as its "global advertising technology and sales partner", though it's "early days" for this collaboration.
Advert
Unfortunately, it sounds like the inclusion of ads might not actually be the worst part of Netflix's new ad-supported tier.
Speaking during Netflix's earnings call on Tuesday (thanks, Deadline), company co-CEO and chief content officer Ted Sarandos said that the new tier will be missing some of Netflix's licensed content.
"The vast majority of what people watch on Netflix, we can include in the ad-supported tier,” Sarandos stressed. "We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business."
Netflix original shows - such as Stranger Things, Sex Education, and The Umbrella Academy - will all be safe. And as Sarandos points out, the original shows are what a lot of people subscribe for in the first place. But the shows and movies Netflix pays to license out - Friends, Community, various superhero movies - their fate is less certain.
Advert
At this stage we have no idea which of these licensed shows will be cut from the mix, but there are bound to be some pretty harsh losses. Still, if you're after a cheaper way to binge Netflix's latest show and aren't too fussed about anything else, the new tier could be right for you.
We'll update you as we learn more.
Topics: Netflix, TV And Film