This week, Netflix finally officially announced the launch of its cheapest ad-supported plan in Brazil. The new plan, called “Basic with ads”, is scheduled to be launched on November 3 and promises to leverage the platform's subscriptions and offer more options to consumers. 

While Netflix described the new plan as “the ad-supported Basics of everything people love about Netflix,” Ted Sarandos, Netflix's co-chief executive and chief content officer, had suggested in July that this new plan could count. with a smaller catalog than other service plans.

This is due to the fact that because Netflix has never had ads and had no intention of doing so until recently, some of the licensing agreements they have negotiated for movies and TV shows specifically prohibit them from being shown with commercials.

Variety talked about this, citing some comments from Netflix chief operating officer Greg Peters, who promised that Netflix intends to work to reduce the number of titles that will not be available on the Basic plan over time.

“A limited number of films and TV shows will be unavailable due to licensing restrictions and we will work to reduce this over time.”

At this time, it's not yet known exactly which titles will be left out of the ad plan at launch, but it's certainly a reason to check before deciding to change your current plan or sign up for a new one.

According to Deadline, Ted Sarandos, Netflix's co-chief executive and chief content officer, admitted the information in a meeting about the company's earnings in recent months.

The cheaper, ad-supported subscription doesn't include all of Netflix's licensed content at launch. The streaming giant needs to negotiate with studios and distributors to convince them to change the previously stipulated agreement.

Netflix is negotiating its deals with Warner Bros. (You Studio), Universal Television (producer of Russian Doll) and Sony Pictures Television (producer of Cobra Kai), based on updates from The Wall Street Journal. The company also needs to renegotiate the rights to some older series, such as Breaking Bad.

Sarandos said during the meeting that most Netflix shows will be included in the new plan, but there are some that won't be possible without negotiation with the studios. However, he points out that users would have a great experience if the subscription started today.

During the meeting, he also confirmed that Netflix lost almost 1 million subscribers in the second quarter of 2022. Despite the negative result, the company made a profit of US$ 1.44 billion (~R$ 7.77 billion) and expects to reach the number 1 million users in the next quarter. According to Sarandos, the streaming giant will have new measures to increase its subscriber base.

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