Netflix’s ad-supported tier may not show commercials during children’s programming, a decision its rival Disney+ made in May. As reported by Bloombergtold Netflix partners that children’s programs would remain ad-free.
Sources also told the outlet that original films would initially remain ad-free, probably to appease filmmakers who don’t want their high-budget releases ruined by advertising. If true, subscribers would be happy about this too.
However, original series such as ‘Stranger Things’, ‘Bridgerton’ and ‘Squid Game’ are expected to still feature ads.
Netflix declined to comment on londonbusinessblog.com.
If the streamer kept their kids’ programming ad-free, it could help make up for the recent loss of subscribers. Some parents may have strayed from the service because of its high price tag, so the upcoming cheaper ad-supported tier can help them save money and give their kids an ad-free streaming experience too.
Advertising and children’s programs don’t mix well. Google and YouTube realized this after paying $170 million for violating children’s privacy laws. Targeting ads to individual children is seen by some as exploitative, and Netflix probably doesn’t want this reputation — and neither does its advertisers. Organizations like the American Psychological Association have called for stricter restrictions on advertising to children.
We don’t know much about Netflix’s upcoming ad-supported plan at this point — just that it’s coming to the service in 2023.
Working with Microsoft, the technology and sales for ads are all handled by the third party, so some decisions may be outside of Netflix’s control. For example, there was speculation that the ad-free plan would block offline downloads, a common move for streaming services.
We also know that not all shows can be offered in the ad-supported version. Netflix has confirmed that it is negotiating deals to bring certain programs to its ad-supported level.
Analysts predict Netflix will be one of the most prominent players in online video advertising, with an estimated $4 billion a year in advertising sales.