Shonda Rhimes is NOT happy with Netflix's new mid-show ads
14.02.2023producer Shonda Rhimes has slammed ‘s new subscription tier that includes ads, complaining that the introduction of mid-show commercials will interrupt her storytelling.
After continuously losing subscribers, the streaming giants have introduced a subscription tier that will play 15-30 second commercials during shows and movies.
Netflix has told creators that they will not be sharing any revenue they get from advertising.
Mike Flanagan and Trevor Macy, who head production company Intrepid Pictures, are also reportedly incensed by Netflix’s decision and agree with Rhimes that ads interfere with storytelling.
When Rhimes signed a multiyear deal with Netflix in 2021 to exclusively make content for the company, there was a strict policy that the streaming service would not use ads.
But some producers seem less bothered by the plan including Ryan Murphy, who’s hit show Dahmer recently became the second-highest viewed English show on Netflix.
Bridgerton producer Shonda Rhimes has said she is not happy with Netflix introducing ads to the service, as she thinks it will disrupt storytelling
Meanwhile, producer Ryan Murphy, who inked a $300 million deal with the streaming service to produce shows exclusively for them, is not phased by the new subscriber tier
In July, Netflix announced that it had lost nearly 1 million subscribers in the second quarter of the year — almost five times the amount lost in the first quarter
Murphy was given a stunning $300 million deal by the company in 2018, and has since produced shows such as Dahmer, Monster, Halston and upcoming thriller The Watcher.
Meanwhile, Murphy has not complained, and a person familiar with his work said he breaks episodes into three acts, which makes for easy commercial placement.
Netflix introduced the cheaper plan in an effort to attract new subscribers after the company lost thousands of customers in the first half of the year.
Subscribers to the new $6.99-a-month plan will have to endure roughly four to five minutes of advertising per hour.
Netflix have reportedly told creatives that they will play the advertisements during intervals that minimize the effect on the story’s plot.
‘We’re using our internal content tagging teams essentially to find those natural breakpoints so that we can deliver the ad in the least obtrusive point,’ said Netflix operating chief Greg Peters in October
Trevor Macy is one creator who is upset with Netflix’s decision, as he and colleague Mike Flanagan create horror movies and shows for the service
Netflix have reportedly told creatives that they will play the advertisements during intervals that minimize the effect on the story’s plot, but Flanagan indicated he is still unhappy with it
They have also indicated the subscribers who pay for no ads will dwarf those who will subscribe to the new tier.
Still, the explanations haven’t been enough for some creators.
Flanagan and Macy’s production team specializes in horror films and shows, which are often contingent on building tension over a long-period of time — something commercials will interfere with.
One 50-minute episode of Intrepid’s ‘The Haunting of Hill House’ is comprised of five long, single-shot takes.
The episode is now broken up by three one-minute long commercial breaks, which show three ads each.
Intrepid Pictures reportedly signed a deal with Netflix that was dependent on them not having to deal with advertisements in their productions.
Rhimes is one of the most high-powered producers at the company, and has produced shows such as hit romance series Bridgerton
Dahmer, created by Murphy, recently became the second-highest viewed English show on Netflix
Since Netflix owns its original programming, they can insert the buy bung ads when and where they want to.
Since its inception 15 years ago, Netflix has refused to include commercials in any of its offerings, but that has all changed after it lost 200,000 subscribers globally during the first three months of the year and 970,000 from April to June.
Netflix reported 220.7 million paying subscribers as of June, down nearly 1.2 million from the start of the year.
In July, Netflix announced that it had lost in the second quarter of the year — almost five times the amount lost in the first quarter.
At $6.99 per month, Basic with ads is $3 cheaper than the lowest-priced ad-free tier (Basic), which costs $9.99 a month.And it is $13 cheaper than Netflix’s Premium package.
A ‘limited number’ of movies and TV shows will not be available on the ad-supported plan because of licensing restrictions, ‘which we’re working on,’ the company said.
The new option will be available in 12 countries including the United States, Britain, Brazil, France, Germany, Japan and Korea, the company said in a statement.
Netflix had originally said it would launch adverts in 2023, but it’s brought the launch date forward, allegedly due to dwindling subscriber numbers.
Industry insiders suspected Netflix wanted to introduce ads before streaming rival Disney+ releases its own ad-supported tier in the US on December 8.
Other streaming services including Hulu, Disney+ and HBO Max have cheaper, ad-supported options or will offer them soon.