Ted Sarandos, the co-president and CEO of Netflix, slipped a word to the audience during a conference during which the quarterly results were presented. The company notably revealed that it had lost 970,000 subscriptions from the end of March to the end of June, instead of the 2 million less it expected.
Netflix has been working on an ad-supported subscription for a few months. This formula, created in collaboration with Microsoft, will be more affordable for Internet users than the regular option without ads, which will remain available.
For this new type of subscription to see the light of day, Netflix must renegotiate agreements with production houses and distribution partners around the world. The initial contracts did not provide for the integration of advertisements.
Some discussions have not yet resulted, which suggests that Netflix will not be able to make its entire offer available in time for the launch of the subscription with advertisements, according to what Ted Sarandos admitted on Tuesday.
The vast majority of what people watch on Netflix we can include in the ad medium. There is content excluded at the moment, and we are in discussions with the studios about it, but if we launched the product today, the members of the advertising arm would have a great experience.said Ted Sarandos.
” We will unlock other productions, but certainly not all of them. We do not believe this is a material holdback for the company. »
Netflix’s subscription plan with ads is expected to launch in early 2023.