The Wall Street Journal: Netflix looks to renegotiate programming deals to allow ads to be shown

Netflix Inc. is seeking to amend its programming deals with major entertainment studios to allow the streaming giant to put content on an advertising-supported version of the service, people familiar with the matter said.

Among the studios Netflix
NFLX,
-1.63%
has begun talks with are Warner Bros.
WBD,
+2.12%,
which makes the hit stalker drama “You”; Comcast’s
CMCSA,
+1.48%
Universal, producer of the dark comedy “Russian Doll”; and Sony Pictures Television, producer of “The Crown” and “Cobra Kai,” the people said.

In addition to shows created specifically for Netflix, the company also will need to renegotiate agreements for the old television shows it carries, such as “Breaking Bad” from Sony
SONY,
+0.07%
and “NCIS” from Paramount Global
PARA,
+3.81%.

Obtaining such permissions is crucial for Netflix if it wants an ad-supported tier to offer a catalog of programming as robust as the lineup in its commercial-free plans. While Netflix makes a large amount of its own content, it also licenses many of its original shows and acquires content from other companies.

Studios likely will seek a premium of 15% to 30% over existing contracts to grant Netflix the right to put their content on an ad-supported platform, some entertainment executives said.