Not all Netflix shows will stream on the ad-supported tier

When Netflix's cheaper ad-supported tier launches next year, subscribers may find themselves unable to access some of the service's titles available as part of its regular package. As Deadline notes, Netflix Co-CEO and Chief Content Officer Ted Sarandos admitted during the company's latest earnings call that the upcoming subscription option will not include all of its licensed content at launch. It will miss shows and movies from US and international studios and distributors, unless the company can successfully (and quickly) convince them to change the originally agreed upon deal.

Netflix is ​​in talks with studios to change their deals and be able to make their shows available to stream with ads. Based on a previous Wall Street Journal report, Netflix is ​​renegotiating its deals with Warner Bros. (the studio behind You), Universal (the producer of Russian Doll) and Sony Pictures Television (the producer of Cobra Kai). The service is also expected to renegotiate the terms of some of the older shows it offers, including Breaking Bad.

Sarandos said on the earnings call:

"Today the vast majority of what people watch on Netflix we can include in the ad medium. There are some things that aren't and we're in talks with the studios, but if we We're launching the product today, members of the advertising tier would have a great experience. We'll be removing some extra content, but certainly not all of it, but don't think of it as a material holdback for the company. "

In the same call, Netflix also admitted to losing nearly 1 million subscribers in the second quarter of 2022. It still made a net profit of $1.44 billion and plans to add 1 million net subscribers in the next quarter, but hopes some of the steps it's taking will help it grow its user base yet again. The tier of ad support it's launching with Microsoft early next year could help Netflix grow in markets where ad spend is high.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission.