Netflix’s upcoming cheaper ad-supported tier will not offer its complete catalog

Recently, the popular video streaming service, Netflix announced a new cheaper tier with ads that will launch in early 2023. Deadline reports that the upcoming affordable plan will not offer the streamer’s complete catalog. 


Although Netflix currently leads the video streaming market, the company is gradually losing its position. In May this year, the streaming giant reported a loss of 200,000 subscribers in Q1, 2022 after a decade. And the company’s subscription-based continued to plunge in Q2, 2022 with a loss of a million subscribers and a 2% decline in market share in the United States.

But most of its competitors experienced growth; Disney+, Apple TV+, Paramount+, and Hulu gain subscribers and increase market share in Q1 and Q2 of this year.

To make up for the lost revenue, Netflix increased the monthly subscription fees across tiers and also introduce a cheaper ad-supported subscription tier in partnership with Microsoft as its technology and sales partner. 


Except for Netflix’s original content, the new ad-supported tier will not offer all of its licensed titles

The company’s co-CEO and Chief Content Officer Ted Sarandos told the publisher that the cheaper plan will offer all of Netflix’s original series but not all of its licensed content from the U.S studios and international distributions. 

“Today, the vast majority of what people watch on Netflix, we can include in the ad-supported tier,” Sarandos said on today’s earnings call. “There’s some things that don’t and we’re in conversations with the studios on, but if we launched the product today, members in the ad-tier would have a great experience. We will clear some additional content but certainly not all of it but don’t think it’s a material holdback for the business.”

However, he added that the company is in talks with the studios and distributors to make their shows available on the upcoming ad-supported tier.

In addition, the streamer has introduced other features to attract more subscribers like support for Spatial Audio for original content, Mystery boxes for kids, hub on Spotify, and mobile games on iOS and Android.

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