More details about Netflix’s ad-supported subscription surface, and it doesn’t look good

'Netflix with ads' will not allow members to watch offline content, in other words, download shows and movies on apps.

Netflix has been working on a new ad-supported tier for a while, and today, more information about this subscription is available. According to a developer, Steve Mose, the subscription, which would be called 'Netflix with ads', will not allow members to watch offline content, in other words, download shows and movies on apps. It may upset members as offline viewing is highly useful if you're travelling. It also lets users save the phone's battery as they can view the show/movie without the internet.

The developer discovered the update within the code of the app, though the company is yet to confirm this detail. Netflix earlier clarified that the ad-supported subscription would launch either at the end of this year or early next year.

Moser also highlights that "there will be a set up experience for users of the new Netflix with ads plan", but exact information remains unclear. The company announced its plans to roll out the ad-supported plan after losing paid subscribers. In the March quarter (Q1 2022), the streaming giant lost nearly 200,000 paid subscribers. In Q2 2022 (April to June), Netflix lost 970,000 paid members, which is still better than the expected two million figure. Currently, the company reports that it has 220.67 million paid members worldwide.

As the name suggests, the ad-supported Netflix plan will show adverts, likely on the home page and before the movie or show begins. Streaming giants like Amazon Prime Videos and Disney+ Hotstar also show ads on their main apps. Netflix will likely follow their steps and not show ads in the middle of the movies or shows.

Netflix is also speaking to major studios to bring content into this special tier with ads. In its earnings call for the last financial quarter, Netflix co-CEO Ted Sarandos said, "If we launched the product [ad-supported subscription] today, the members in the ad tier would have a great experience. We will clear some additional content, but certainly not all of it, but we don't think it's a material holdback to the business."

Netflix also announced that it is developing an ad-supported subscription with Microsoft.