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.

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.

Editors' Recommendations

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)…
Everything leaving Netflix in September 2023
The Enterprise crew looks at the camera in the 2009 film Star Trek.

"To everything, turn, turn, turn. There is a season, turn, turn, turn." The Byrds' ode to time passing by is always relevant, especially when streaming schedules shift with each month. All good things must come to an end, and that includes some of your favorite movies and TV shows on streaming services. Netflix is not immune to losing content, even if it more than makes up for it with originals like Heart of Stone or The Out-Laws.

In September 2023, Netflix will be losing some seasons of The Originals, the popular Vampire Diaries spinoff, and Hatfield & McCoys. In addition, the mega-popular romance Titanic, the first five Rocky movies, the comedy A League of Their Own, and the superb Harrison Ford action movie Clear and Present Danger will be leaving the popular streaming service next month. Find out if one of your favorites is leaving Netflix in September so you can watch it before it disappears.

Read more
Everything coming to Netflix in September 2023
Three male students sit together in Sex Education season 4.

While there's a multitude of streamers to choose from, Netflix continues to be the primary destination for streaming movies and TV shows. With recent hit shows like The Lincoln Lawyer, Suits, and The Witcher season 3, plus blockbuster movies like Heart of Stone and the Jason Statham action movie Safe, Netflix still rules the streaming landscape like no other.

Netflix's dominance will continue in September 2023 with the premiere of new seasons of hits shows like Sex Education, Virgin River, Love is Blind, and Top Boy. In addition, the new series Castlevania: Nocturne will debut, as will the charming rom-com Love at First Sight. Check the list below for everything that is coming to Netflix in September 2023.
September 1
A Day and a Half

Read more
Don’t bother sending back those final Netflix DVD rentals
Netflix final DVD envelope.

If for some reason you're still renting DVDs from Netflix and plan to keep doing so until that end of the service goes the way of the dinosaur on September 29, you can hold off on sticking the discs back in the mail. Netflix doesn't want them.

The "DVD Netflix" account on X (formerly known as Twitter) today clarified that "we are not charging for any unreturned discs after 9/29. Please enjoy your final shipments for as long as you like." It followed up the statement with a trio of emoji, as serious communications from serious companies tend to do.

Read more