Netflix's Ad-Supported Tier Will Have a Smaller Catalogue

The forthcoming, cheaper subscription option is expected to arrive "around the early part of 2023"

BY Calum SlingerlandPublished Jul 22, 2022

A month on from announcing the forthcoming arrival of a cheaper, ad-supported streaming tier, Netflix has confirmed that this new subscription level will feature a smaller programming catalogue.

As Protocol points out, Netflix executives made mention of the smaller catalogue during an earnings call Tuesday (July 19), in which they laid out a broader strategy for the subscription level.

Following reports earlier this month that Netflix was asked by studios to "pay a significant premium" to include their licensed content in the forthcoming ad-supported tier, the streaming giant rebuffed that request, "effectively telling content partners they didn't really need their shows and movies all that much" considering their amount of original productions.

"The vast majority of what people watch on Netflix, we can include in the ad-supported tier today," Netflix co-CEO Ted Sarandos said [via Protocol], adding, "We will clear some additional content, but certainly not all of it. But I don't think it's a material hold-back to the business."

Tuesday's call also confirmed Netflix will launch the ad-supported tier in "more mature ad-markets" first, according to chief product and operating officer Greg Peters, before expanding it globally. Initial launch countries were not disclosed.

Protocol also notes that in a Q2 letter to investors shared Tuesday, Netflix revealed that they aim to launch the ad-supported tier "around the early part of 2023."

Upon announcing the ad-supported tier in June, Netflix axed an additional 300 jobs to follow the firing of 150 employees in May. Sarandos previously described the cheaper tier subscription as one for viewers who feel regular Netflix is too expensive and "don't mind advertising."

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