Netflix seeks to rework programming deals with Hollywood Studios for ad-supported tier: report

Netflix is ​​seeking to change its programming deals with Hollywood studios to allow the streaming pioneer to launch an ad-supported version of its service, The Wall Street Journal reported Tuesday.

The company has entered into discussions with Warner Bros., Universal and Sony Pictures Television, the report said, citing people familiar with the matter.

He will also have to renegotiate deals for older TV shows such as Sony’s Breaking Bad and Paramount Global’s NCIS, according to the report.

Netflix told Reuters it was still in the early stages of deciding how to launch a cheaper, ad-supported option, and added that it was just speculation at this stage.

Warner Bros., Universal and Sony did not immediately respond to Reuters requests for comment.

Earlier in June, co-CEO Ted Sarandos said Netflix was in talks with several companies for advertising partnerships.

After losing subscribers for the first time in a decade and projecting a drop of 2 million in the next quarter, Netflix said in April it was considering launching a cheaper tier with advertising.

Netflix’s most formidable challenger – Walt Disney’s Disney+ – has also said it will introduce an ad-supported tier, as the pandemic streaming boom wanes, competition tightens and rising inflation pinches consumer spending on entertainment.

In April, Netflix offered a grim prediction for the spring quarter, forecasting that it would lose 2 million subscribers, despite the return of such highly anticipated series as Stranger Things and Ozark and the debut of The Gray Man, starring Chris Evans. and Ryan. Gosling.

The company said it lost 200,000 subscribers in the first quarter, well below its forecast to add 2.5 million subscribers. The suspension of service in Russia after the invasion of Ukraine took its toll, resulting in the loss of 700,000 members. The announcement caused Netflix’s shares to plummet by 26% and wiped around $40 billion (roughly Rs 3,05,320 crore) from its market value at the time.

© Thomson Reuters 2022


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