Netflix Inc. is removing an existing feature for the new ad-supported tier in its regular service. The streaming giant is planning not to allow its users to download movies and shows to their devices for offline viewing after a code was seen in the iPhone app of the company.
This move means that Netflix distinguishes its new offering from its existing service. The streaming giant had resisted ad-based content over the years. They now plan to roll out the ad-supported tier in early 2023. A new code confirms the hints of the new service on the iPhone app.
As per information shared with Bloomberg News, developer SteveMoser discovered the text in the app that says downloads are available for all plans except those content with ads. The code suggests that viewers will not be able to skip the ads, which is a common move on the streaming platform. Ad breaks will also not allow viewers to use playback controls.
Netflix did not comment as the service launch is still a few months away. The approach may likely change as the plans are still not final. The early clues suggest that Netflix, on its ad-based service, will strictly limit frills.
Netflix regular plans allow users to download content for viewing in places without internet, such as flights. The lack of options can help Netflix sell premium services to users who get hooked to ad-supported plans. The Los Gatos, California, the headquartered company, said it wouldn’t offer all its contents on the ad-based plans.
Declining Viewership
Netflix customers are declining in the face of competition from rivals Amazon.com Inc., Warner Bros. Discovery Inc.’s HBO Max, and Walt Disney Co. In the last quarter, the company lost 1.3 million customers in US and Canada, its biggest locations.
Warner Bros, Disney’s Hulu, Comcast Corp.’s, HBO Max, and Peacock already have ad-supported services to push growth. HBO Max budget plans have also deactivated the download options.
The Netflix app has text references that refer to ad expansions and how Netflix will tailor ad-specific content for specific users. The ad-supported plans will offer a cheaper alternative to customers put off by the rising costs of subscription plans. The stream offers 4K resolution up to four screens at $20 a month in the US for its premium level service.
Netflix had earlier said that it would offer ad-based services to multiple regions. Microsoft Corp. will be its technology and Sales partner for the advertising system.
