Netflix lost nearly 1 million subscriptions in the second quarter of 2022.
People who plan to subscribe to the formula with advertisements on which Netflix works may not have access to all the films and TV series on the platform. The streaming giant said it is still in discussions with studios and distribution partners to negotiate the deals.
Ted Sarandos, the co-chairman and CEO of Netflix, said slipped a word to the audience during a conference during which the quarterly results were presented. In particular, the company revealed that it 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 ad-free option, which will remain available.
For this new type of subscription to see the light of day, Netflix must renegotiate deals 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 advertising 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, indicated Ted Sarandos.
“We will unlock other productions, but certainly not all. We don't think this is a significant holdback for the company.
— Ted Sarandos
Netflix's subscription plan with ads is expected to launch in early 2023.
With information from Deadline, and  ;Engadget