• by Karlene Lukovitz  @KLmarketdaily, November 7, 2022

A group of creators, including Shonda Rhimes, has complained to Netflix about their content being interrupted by mid-video ads in the ad-supported tier launched last week, according to CNBC sources — although their objections aren’t likely to have much impact, at least in the short term. 

Rhimes, whose Netflix productions include the massive hit series “Bridgerton” (above) and “Inventing Anna,” signed a multiyear deal with Netflix in 2021, prior to the company’s sudden reversal this year of its vow not to take advertising. 

Trevor Macy and Mike Flanagan of Intreprid Pictures, which produces horror movies and series, who signed with Netflix in 2019, are also reportedly objecting, on the grounds that ads break the critical buildup of tension in horror storytelling. 

For example, the 50-minute sixth episode of their series “The Haunting of Hill House,” comprised of five single-shot takes, is now interrupted by three 60-second ad breaks, each including three separate ads. 

Rhimes, Intrepid and Netflix declined to comment on the report. 

Netflix has reportedly told creators that the ad insertions are being carefully timed to minimize interruptions of storylines, and that relatively few existing Netflix subscribers are expected to switch to the $6.99 ad-supported tier. 

But as the owner of the content, Netflix has the right to insert ads. And it also has no intention of sharing ad revenue with creators, according to the sources. 

Warner Bros. Discovery has, at least for now, avoided the issue by not inserting midroll advertising, and has reportedly shared revenue when it licensed shows to cable, as with “The Sopranos” airing on A&E. Some Disney+ content creators are also reportedly eligible for ad revenue sharing. 

HBO and Disney declined to comment on the report.