Netflix recently announced that they will be keeping their kid’s content ad-free. The streaming service informed its partners of this decision.
According to Bloomberg, the partners asked to stay anonymous, as the details are still being worked out.
Netflix is soon to be introducing ads for certain plans, but the ad-tier plans should take place sometime next year. The ad-friendly tier will cost less than an average subscription to Netflix. Many people began canceling their subscriptions when prices started to rise, and a large chunk of subscribers share their accounts with friends and family to cut costs.
As reported by Bloomberg, “Analysts estimate Netflix could generate $3 billion to $4 billion a year in ad sales.”
Although the streaming service will incorporate ads in some titles, they will leave kids’ shows without them.
Lucas Shaw from Bloomberg wrote: “Children’s programming presents a particular challenge when it comes to advertising. Google and YouTube had to pay $170 million for violating kids privacy laws. Netflix will show kids programs in its news service without the commercials and could, at some point down the line, decide to introduce ads.”
Additionally, Netflix does not plan, at this moment, to air ads during new movies released onto the platform. They also will not show ads during their original shows, such as “Stranger Things,” and “You.”
However, as details are still being finalized, they could change these decisions at some point.
Netflix to Incorporate Advertisements onto Platform
Subscribers are unhappy with the new plan announcements. People took to Twitter to complain about it. One Twitter user said: “seriously, HBO’s clearance of animation, Netflix’s plan to add ads and now this.”
Another subscriber tweeted about the other unsavory parts of the new plan. They said: “* CODE WITHIN NETFLIX APP SHOWS LACK OF DOWNLOADING FOR AD TIER * NETFLIX’S AD-SUPPORTED PLAN WILL BLOCK DOWNLOADS OF SHOWS, FILMS * NO-FRILLS APPROACH IS REFLECTED IN CODE HIDDEN IN NETFLIX APP * COMPANY PLANS TO RELEASE THE LOW-BUDGET PLAN EARLY NEXT YEAR @business$NFLX.”
HBO Max has also been under fire due to wiping a lot of content from the streaming service in preparation for their merger with Discovery+. Many of the shows wiped include children’s shows such as 200+ episodes of “Sesame Street.” They also got rid of many animations that both adults and children enjoy, and are purging all scripted content.
A spokesperson for HBO gave a statement to NPR that read: “As we work toward bringing our content catalogs together under one platform, we will be making changes to the content offering available on both HBO Max and discovery+. That will include the removal of some content from both platforms.”
With the addition of ads to Netflix and the removal of fan-favorites from HBO Max, the streaming service world has been making subscribers very angry.