Netflix‘s upcoming ad-supported tier will not allow subscribers to download films and TV shows for viewing offline, reports Bloomberg. The restriction was found in code in the Netflix app for iOS devices, which reads “Downloads available on all plans except Netflix with ads.”
The Standard Netflix tier of service allows some NetFlix content to be downloaded to a user’s device for viewing at a later date.
It was confirmed earlier this year that Apple would partner with Microsoft for its planned lower-priced ad-supported streaming tier. Microsoft will handle ad sales for the streamer.
Netflix co-CEO Ted Sarandos said in June: “We’ve left a big customer segment off the table, which is people who say: ‘Hey, Netflix is too expensive for me and I don’t mind advertising,'” Sarandos said. “We are adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'”
The Bloomberg report says that Netflix will not allow ad-tier viewers to skip ads or even access playback controls while the streamer is playing ads. Netflix will not offer the same amount of content across all tiers. The ad-supported Netflix tier is not set to launch until early 2023.
While Netflix had in the past said it would not offer a lower-priced ad-supported tier, the company changed its corporate mind following a disappointing first quarter of 2022. Netflix lost subscribers for the first time in 10 years and saw its revenue growth slow considerably. The streamer blamed the downturn on “a large number of households sharing accounts” and “competition.”
The company has steadily raised its prices over the last few years, most recently at the beginning of this year. The streamer’s basic plan is now priced at $9.99, up from $8.99, and the standard plan that allows for HD streaming is priced at $15.49, up from $13.99 per month. The highest-tier 4K Ultra HD streaming plan currently costs $19.99, up from a prior $17.99 price point. Netflix is the only streaming provider that charges by the quality of its streams.
Netflix lost subscribers during Q1 2022, marking the first time in more than a decade that this has happened. The streaming giant lost over 200,000 subscribers during the quarter, and the losses show no signs of abating, as it expects to lose two million more subscribers in the second quarter of 2022.
Netflix earlier this year began testing an extra payment for those who share their Netflix accounts with people outside their households in March in Peru, Chile, and Costa Rica. Until now, Netflix has ignored password sharing. Netflix said that it was working to “understand the utility of these two features” before making changes in other countries.
