Netflix Inc. is looking to upgrade its programming deals with Hollywood studios to enable the launch of an advertising-supported version of its service, the Wall Street Journal reported on Tuesday. The company is in talks with Universal, Sony Pictures Television, and Warner Bros. Netflix also needs to renegotiate agreements for older television shows such as "Breaking Bad" from Sony and "NCIS" from Paramount Global, according to the report. The streaming platform told Reuters it is still in the early days of deciding how to launch a lower-priced, ad-supported option and added that it is all just speculation at this point. Warner Bros., Universal, and Sony did not immediately respond to Reuters requests for comment.
Earlier in June, co-CEO Ted Sarandos said Netflix is in talks with several companies for advertising partnerships. After losing subscribers for the first time in a decade and projecting a 2 million decline in the upcoming quarter, Netflix said in April it was considering the launch of a lower-priced tier with advertising. Netflix’s most formidable challenger - Walt Disney Co's Disney+ - has also said it would introduce an ad-supported tier as the pandemic boom in streaming fades, competition tightens, and rising inflation pinches consumer spending on entertainment.