Based on a report by TechCrunch, Netflix might adapt the commercial-free format in kid shows for their ad-supported plans as Disney+ started in May, considering that both are competitors.
This will help them as some subscribers have left the streaming platform because of its high price and the possibility of inclusion of advertisements on kid-oriented programs. It could help the company regain its past subscribers and attract new ones in the future as this plan is cheaper and safer for kids.
Google and Youtube were the first companies to discover that children and advertisements are not compatible and can not be together as the two companies have paid a $170 million fine for settlement regarding children's privacy laws.
The Federal Trade Commission considers exploitation by targeting advertisements to the kids watching on a certain platform. As one of the biggest streaming platforms, Netflix might want to consider this for the company's reputation.
Some sources of the article also say that filmmakers who do not want their works to be ruined by advertising will likely stay ad-free. However, this was not confirmed by Netflix. Netflix Original Series such as "Stranger Things," "Bridgerton," and "Squid Game," will still be including advertisements as these were their heavily supported shows.
The release of the ad-supported plans on Netflix are still in the works and can be expected in 2023, hence the limited information regarding these new tiers that they will be offering.
What We Know
Based on a report by Bloomberg, the ad-supported plans will not offer the download option that the basic tiers offer right now, where subscribers can still watch their favorite movies and series via offline viewing. Together with this are the unskippable ads on the platform via the indicated app's code.
While all of this information is already in the talks by several sources, a representative from Netflix has confirmed that no decisions have been made yet and all of the releases are mere speculations.
Netflix is also planning on resolving the sharing of passwords outside the household as the subscriber count has decreased based on their Q1 earnings.
The ad-supported plan is a strategy that Netflix came up with for growth in their revenue. During the Q2 earnings interview, Microsoft will collaborate with the company exclusively as the ads will be sold to them. Because of this, some decisions that may affect the viewer's experience when it comes to advertisement, and Netflix may be out of control of the situation as.
Netflix in the Future
Predictions from analysts have stated that Netflix will be one of the successful companies in advertising, earning potentially 4 billion in revenue in the United States. Richard Greenfile, Lightshed Analyst said, "However the relative time spent illustrates just how large the financial opportunity is for Netflix.".
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Written by Inno Flores
