Netflix May Follow Disney+’s Lead by Not Running Ads During Kids' Programming

According to Bloomberg, Netflix told its partners that kids' programming would stay commercial-free, just like a decision made by its competitor, Disney+, in May.
Netflix May Follow Disney+’s Lead by Not Running Ads During Kids' Programming

According to Bloomberg, Netflix told its partners that kids' programming would stay commercial-free, just like a decision made by its competitor, Disney+, in May.
Original movies will likely remain ad-free, at least in the short term, as a concession to filmmakers who don't want their expensive releases marred by advertising. Subscribers will be happy about this, too.

However, original shows like "Stranger Things," "Bridgerton," and "Squid Game" will probably remain ad-supported.

Netflix didn't comment on this story to TechCrunch. 

Keeping kids' programming ad-free can at least compensate for the streamer's recent loss of subscribers. Some parents may have drifted away from the service because it was too expensive, so a cheaper ad-supported tier should help them save money and give their kids an ad-free streaming experience.

Advertising and kids' programming don't belong in the same category. Google and YouTube learned this the hard way when paying out $170 million to settle charges of violating children's privacy laws. Targeted ads for particular children are an exploitation tactic, and Netflix likely doesn't want that reputation — nor do its advertisers. Organizations like the American Psychological Association have been clamoring for tighter restrictions on advertising to children.

We don't know much about the ad-supported plan from Netflix yet, only that it's coming to the service in 2023.

The third party handles all the technology and sales for advertising in partnership with Microsoft, so some decisions are going to be out of Netflix's control. Take, for example, speculation that the ad-free plan would block offline downloads, a common move for streaming services.

We also know that not all its shows can be offered on the ad-supported version. Netflix has confirmed it’s negotiating deals to get certain programming onto its ad-supported tier.

Analysts predict that Netflix will be one of the most prominent players in online video advertising, generating an estimated $4 billion a year in ad sales.

 

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2024-11-25 19:47:15