Netflix Inc isn\u2019t planning to let users of its new ad-supported tier download shows and movies to their devices for offline viewing, according to code found inside of the company\u2019s iPhone app, removing a feature that customers enjoy on its regular service.<\/p>\n
The move suggests Netflix is doing what it can to distinguish the upcoming service from its current offerings. The streaming giant, which eschewed advertising for years, is planning to roll out the ad-supported level by early next year. But hints about the new service are already reflected in code hidden within its iPhone app.<\/p>\n
\u201cDownloads available on all plans except Netflix with ads,\u201d according to text in the app that was discovered by developer Steve Moser and shared with Bloomberg News. The code also suggests that users won\u2019t be able to skip ads – a common move in the streaming world – and playback controls won\u2019t be available during ad breaks.<\/p>\n
Netflix declined to comment. Given that the service\u2019s launch is several months away, it\u2019s likely that the company\u2019s plans aren\u2019t yet final and its approach could still change.<\/p>\n
Still, the early clues suggest Netflix is strictly limiting the frills on the ad-based service. With its regular plans, users can download content for viewing in places without reliable internet access, such as airplanes. The lack of that option could help Netflix upsell users to its higher-end tiers after it hooks them on the ad-supported version.<\/p>\n
The Los Gatos, California-based company has already said that it won\u2019t offer all of its content on the ad tier.<\/p>\n
Netflix has been losing customers and faces competition from Walt Disney Co, Amazon.com Inc and Warner Bros Discovery Inc\u2019s HBO Max. Last quarter, it shed 1.3 million customers in the US and Canada, its biggest region.<\/p>\n
Rival services such as Disney\u2019s Hulu, Warner Bros.\u2019 HBO Max and Comcast Corp\u2019s Peacock already rely on ad-supported tiers to fuel growth. The budget versions of services like HBO Max also turn off the downloading option.<\/p>\n
Netflix\u2019s app has additional hidden references to its ad expansion, including text about helping Netflix tailor ads to specific users. \u201cNow, let\u2019s set up your ad experience. We just need a few details to make sure you get the most relevant ads on Netflix. It\u2019ll be really quick, we promise!\u201d one message reads.<\/p>\n
The ad-supported tier will provide a cheaper alternative to customers scared off by the service\u2019s rising prices. The service\u2019s premium level, which offers 4K resolution and up to four streams at the same, is $20 a month in the US.<\/p>\n
Netflix has previously said the ad-based service will be available in multiple regions and that Microsoft Corp. will serve as its sales and technology partner for the advertising system.<\/p>\n