No ads for kids programming on Netflix

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While ads are definitely coming to Netflix, they are unlikely to be flooding the shows your children are watching.

According to a report on Bloomberg, Netflix is planning for kids’ programming to stay commercial-free even in its ad-supported tier. It is a decision that follows Disney+ move. Meanwhile, the company also wants to keep original movies ad free in the initial stages as it still finalises plans for its advertising-supported service

Advertising to children can be tricky as seen by giants Google and YouTube who had to pay US$170 million in 2019 to settle allegations by the Federal Trade Commission and the New York attorney general that it made millions when it illegally collected personal information from children without their parents’ consent, said a report on CNBC.

The report also added that Google and YouTube had to pay US$136 million to the FTC and US$34 million to New York for allegedly violating the Children’s Online Privacy Protection Act.

In July this year, Netflix named Microsoft as the tech and sales partner for its first ad-supported subscription offering. Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. All ads served on Netflix will be exclusively available through the Microsoft platform.

Netflix COO Greg Peters said Microsoft had the proven ability to support all its ad needs as they work together to build a new ad-supported offering. It offered the flexibility to innovate over time on both the tech and sales side, as well as strong privacy protections for our members, Peters added.

Netflix began mulling ad-supported subscriptions in April this year after years of resisting ads on its platform. Co-CEO Reed Hastings previously said during its earnings call that making a cheaper option available to consumers would "make a lot of sense". As much as he is a fan of the simplicity of subscription, Hastings admitted that he is also a fan of consumer choice.