As its competitor Disney+ said in May of this year, Netflix intends to retain kids' content ad-free and will not air advertisements during kid-friendly movies and TV shows. According to TechCrunch's sources, Netflix has assured its partners that the kids' show would continue to be free of advertisements.
However, it's believed that original shows like "Stranger Things," "Bridgerton," and "Squid Game" will continue to feature advertisements. The American Psychological Association and other organisations have demanded that advertising to children be subject to severe regulations. Analysts believe that Netflix generates $4 billion in ad sales annually, making it one of the major players in internet video advertising.
The amount of information that YouTube and its creators can gather about children's content is now expressly limited by Google. As part of a settlement to put an end to inquiries into YouTube's suspected acquisition of children's personal information without their parents' consent, the firm was fined $170 million by the US Federal Trade Commission (FTC) in 2019.
In order to cut its losses and attract more users to the network, Netflix announced in June that it would be introducing an ad-supported tier. In order to begin first in nations with more developed ad markets, Netflix is revising the agreements it has with companies to place advertisements on its site. Netflix has collaborated with Satya Nadella-run Microsoft for its new ad-supported subscription plan, which the firm hopes to debut in early 2023. Netflix has been hit by a declining user base.