Netflix is reportedly struggling to strike deals for content just a day ahead of the launch of its Basic with Ads tier.
The streaming giant is set to roll out its new Basic with Ads tier in 12 countries on November 3, offering a reduced program of 720p content for just £4.99/$6.99 per month, subsidised by the insertion of adverts.
According to The Wall Street Journal, however, the streaming giant is struggling to assemble a compelling library of content for the tier. “Netflix continues to haggle with several major studios for the right to run ads against their content in the new service or put their content on the ad tier,” it says, citing the usual people familiar with the matter.
The report goes on to name five major studios that are seemingly yet to be fully convinced of Netflix’s new affordable tier. The list apparently includes Walt Disney, NBCUniversal, Sony Pictures Television, Warner Bros, and Lions Gate Entertainment.
Sony Pictures Television contributes big hitters like Cobra Kai, The Crown, and Breaking Bad. NBCUniversal contributes the likes of You, while Disney supplies the likes of Grey’s Anatomy and How to Get Away with Murder.
Netflix co-CEO Ted Sarandos had assured investors that “the vast majority of what people watch on Netflix, we can include in the ad-supported tier” back in July, but with the support of those five huge studios seemingly still up in the air it remains to be seen.
Netflix is under added pressure to get this ad-funded tier right as key rival Disney+ plans to launch its own subsidised tier next month.