As competitor Disney+ stated in May this year, Netflix intends to keep children’s content ad-free and will not run ads during kid-friendly movies and TV shows. According to TechCrunch’s sources, Netflix has assured its partners that the children’s show will continue to be ad-free.
However, it’s believed that original shows like “Stranger Things,” “Bridgerton,” and “Squid Game” will continue to feature ads. The American Psychological Association and other organizations have demanded that advertising directed at children be subject to strict regulations. Analysts estimate that Netflix generates $4 billion in advertising sales per year, making it one of the biggest players in Internet video advertising.
The amount of information YouTube and its creators can collect about children’s content is now expressly limited by Google. As part of a settlement to end investigations into YouTube’s alleged acquisition of personal information about children without parental consent, the company has been fined $170 million by the Federal United States Trade Commission (FTC) in 2019.
In order to cut its losses and attract more users to the network, Netflix announced in June that it would introduce an ad-supported tier. In order to start first in countries with more developed advertising markets, Netflix is reviewing the agreements it has with companies to place advertisements on its site. Netflix worked with Microsoft, led by Satya Nadella, for its new ad-supported subscription plan, which the company hopes to launch in early 2023. Netflix has been hit by a declining user base.