In today’s earnings call, Netflix confirmed reports circulating since last week that it is renegotiating deals to let the streamer post content on its cheaper ad-supported plan, whose arrival on the platform has been moved to early 2023.

“The vast majority of what people watch on Netflix we can include in the ad-supported tier. There are things that don’t, and we’re in talks with the studios. But if we launch the product today, members of the ad layer have a great experience.And we will clear some extra content […] certainly not everything, but don’t think it’s a material barrier to the company,” said Ted Sarandos, Netflix chief executive officer.

Much is at stake for the streaming service to deliver a high-quality lineup of shows for the newer and cheaper tier, as the company today reported a loss of 970,000 subscribers in the second quarter of 2022. Some of its key programming is strictly Locking it behind the paywall could be a deterrent to people considering the ad-supported version but looking for specific shows.

Netflix didn’t say Who exactly what they’re talking to or what specific titles wouldn’t be at the ad-supported level. however, the The Wall Street Journal reported that Warner Bros., Universal and Sony Pictures are some of the major entertainment studios with which Netflix is ​​trying to tweak programming agreements.

Warner Bros. owns the license for Netflix’s hit drama “You”, the dark comedy “Russian Doll” is owned by Universal and the shows “The Crown” and “Cobra Kai” are produced by Sony.

Netflix has rejected australiabusinessblog.com’s request for comment.

The letter to shareholders also reveals that Netflix’s ad-supported rollout will be gradual and that the plan “will likely kick off in a handful of markets where ad spend is significant”.

Updated 7/19/22, 8:10 PM ET with Netflix’s refusal to comment