A few days ago, Netflix announced an ad-supported tier on their movies and tv shows. This got mixed reviews from their users, and a lot of them were not happy with this news. But now Netflix has said that they are going to skip ads in kids' programs and new movies so the users can enjoy them in their full entirety. Netflix has also informed about this news to their partners so they all can go in the same direction. This news wasn't an official one from Netflix itself. People who know what's going on with Netflix told this to Bloomberg and that's how this news reached the general public.
Netflix is yet to say anything about its new ad-supported tier feature that is set to release early next year. Netflix has also said that all of its content from the ad-free version will not be available on the ad-supported version. Netflix is also talking to several studios like Warner bros, Paramount Global, etc so they can decide about all the licensing and stuff that will permit Netflix to add ads on their movies. It is also reported that Netflix will also need to pay up to 10-15% to these companies to earn the ad rights.
The licenses are going to cost Netflix a fortune but they are determined to earn their ad rights as soon as possible. Even though these studios will probably agree to run ads on their movies, they are also requesting that the ad placements be according to their wills. For instance, some studios want the new movies to have ads only at the start and end so the users do not get frustrated with in-between ads. The ads for children's programs will also be run strictly according to government regulations.
Bloomberg also reports that even if Netflix does not take ads in most of its movies and series, its revenue will still be enough with up to $3 to $4 billion per year. Some are also saying that by 2025, Netflix can get its revenue to $1.5 billion if they stay on the right path.
Read next: Netflix seems to welcome cloud gaming services on the platform to provide a better user experience
Netflix is yet to say anything about its new ad-supported tier feature that is set to release early next year. Netflix has also said that all of its content from the ad-free version will not be available on the ad-supported version. Netflix is also talking to several studios like Warner bros, Paramount Global, etc so they can decide about all the licensing and stuff that will permit Netflix to add ads on their movies. It is also reported that Netflix will also need to pay up to 10-15% to these companies to earn the ad rights.
The licenses are going to cost Netflix a fortune but they are determined to earn their ad rights as soon as possible. Even though these studios will probably agree to run ads on their movies, they are also requesting that the ad placements be according to their wills. For instance, some studios want the new movies to have ads only at the start and end so the users do not get frustrated with in-between ads. The ads for children's programs will also be run strictly according to government regulations.
Bloomberg also reports that even if Netflix does not take ads in most of its movies and series, its revenue will still be enough with up to $3 to $4 billion per year. Some are also saying that by 2025, Netflix can get its revenue to $1.5 billion if they stay on the right path.
Read next: Netflix seems to welcome cloud gaming services on the platform to provide a better user experience