Netflix Says Not All Shows Will Be in Ad Tier Launching Early 2023

"If we launched the product today, members in the ad-tier would have a great experience," said Co-CEO and Chief Content Officer Ted Sarandos

Photo: Netflix

Not every show on Netflix will be part of the platform's pending ad tier.

Co-CEO and Chief Content Officer Ted Sarandos explained why some series available to stream on Netflix won't be eligible for additional advertising, per a call reported by Deadline.

"Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier," Sarandos said.

"There's some things that don't and we're in conversations with the studios on, but if we launched the product today, members in the ad-tier would have a great experience," he continued. "We will clear some additional content but certainly not all of it but don't think it's a material holdback for the business."

Squid Game.Noh Juhan/Netflix

Because Netflix's own series aren't licensed from a third party, subscribers can expect any and all Netflix-created entertainment — from Stranger Things to Squid Game — to fall within the newly monetized content. Therefore, all Netflix programming should still be accessible, even at a lower subscription price.

Subscribers still have time before Netflix launches the Microsoft-fueled ad tier. It's expected to roll out sometime in early 2023.

In June, Sarandos confirmed the long-rumored ad tier would eventually be coming to Netflix. The reason: as Netflix increases subscription prices, the platform sees an opportunity for lower subscription fees, if a patron is willing to watch ads.

"We've left a big customer segment off the table, which is people who say: 'Hey, Netflix is too expensive for me and I don't mind advertising,'" Sarandos said during a panel at the Cannes Lions Festival, according to The Hollywood Reporter.

"We adding an ad tier; we're not adding ads to Netflix as you know it today," he added. "We're adding an ad tier for folks who say, 'Hey, I want a lower price and I'll watch ads.'"

Netflix users will still be able to subscribe to an ad-free tier at a higher price.

The ad tier announcement followed news that Netflix lost 200,000 subscribers in its last quarter, as well as amid a crackdown on Netflix users sharing accounts across households.

The streamer recently lost nearly 1 million paid subscribers in the June quarter.

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