The streamer this morning confirmed reports circulating since last week that it is renegotiating deals to allow the streamer to put content on its cheaper advertising-supported plan, the arrival of which on the platform has been pushed into early 2023.
"The vast majority of what people watch on Netflix we can include in the ad-supported tier.". There are a few things that do not, and we are in discussions with the studios on. However, if we launched the product today, the members of the ad tier will have an amazing experience. And we will clear some additional content … obviously not all, but don't think it's a material holdback to the business," said Ted Sarandos, chief executive officer of Netflix.

The stakes are high for the streaming service insofar as getting a quality lineup of shows for the newer and cheaper tier, since the company reported today it lost 970,000 subscribers in the second quarter of 2022. Locking some of its premier programming strictly behind the paywall could be a deterrent for people who are considering the ad-supported version but are looking for specific shows.

Netflix loses 970,000 subscribers, its largest quarterly loss ever

 Netflix didn't say who exactly they are in talks with or what specific titles wouldn't be on the ad-supported tier. However, the The Wall Street Journal reported that Warner Bros., Universal and Sony Pictures are some of the major entertainment studios that Netflix is trying to amend programming deals with.

Warner Bros. owns the rights to Netflix's raging drama "You," dark comedy "Russian Doll," and shows "The Crown" and "Cobra Kai are owned by Sony."

Netflix declined a request to comment from TechCrunch.

Also seen in the shareholder letter is that the ad-supported tier rollout will be rolling out gradually, and the plan will "likely start in a handful of markets where advertising spend is meaningful.