Netflix’s ad-supported tier may not run commercials during kids’ programs, a decision that its rival Disney+ made in May. As reported by Bloomberg, Netflix told partners that kids’ programming would stay commercial-free.
Sources also told the outlet that original movies would initially stay ad-free, likely to appease filmmakers who don’t want their high-budget releases ruined by advertising. If true, subscribers would be happy about this as well.
However, original series such as “Stranger Things,” “Bridgerton,” and “Squid Game” are expected to still include ads.
Netflix declined to comment to TechCrunch.
If the streamer were to keep its kids’ programming ad-free, it could help to make up for its recent loss of subscribers. Some parents may have strayed from the service due to the high price, so the upcoming cheaper ad-supported tier could help them save money while also giving their kids an ad-free streaming experience.
Advertising and children’s programming don’t mix well. Google and YouTube realized this after paying $170 million for violating kids’ privacy laws. Targeting ads to individual children is seen as exploitative to some, and Netflix probably doesn’t want this reputation — nor do its advertisers. Organizations like the American Psychological Association have called for heavier restrictions on advertising for children.
We don’t know much about Netflix’s upcoming ad-supported plan at this time — only that it’s coming to the service in 2023.
In partnership with Microsoft, the technology and sales for advertising are all handled by the third party, so some decisions may be out of Netflix’s control. For instance, it was speculated that the ad-free plan would block offline downloads, a common move for streaming services.
We also know that not all its shows can be offered on the ad-supported version. Netflix has confirmed it’s negotiating deals to get certain programming onto its ad-supported tier.
Analysts predict that Netflix will be one of the most prominent players in online video advertising, generating an estimated $4 billion a year in ad sales.