As revealed in Netflix's iPhone app code, users of its new ad-supported tier will not be able to download shows and movies for offline viewing, removing one of its most popular features. With the move, Netflix appears to be attempting to differentiate its upcoming service from its existing offerings.

Despite eschewing advertising for years, Netflix plans to launch an ad-supported service early next year. Yet code hidden within its iPhone app hints at the new service. A developer discovered the app's text that says, "Downloads available on all plans except Netflix with ads," and shared it with Bloomberg News. During ad breaks, users won't be able to skip ads - a common practice in streaming - and playback controls won't be available.

A Netflix spokesperson declined to comment. Due to the service's launch being several months away, it's likely the company's plans haven't been finalized and its approach could still change. Netflix's ad-based service appears to be strictly limited in frills.

In places without reliable internet access, such as airplanes, users can download content for viewing. After Netflix hooks users on its ad-supported version, it might be able to upsell them to higher-end tiers if it does not have that option. Los Gatos, a California-based company has already said it won't offer all of its content for advertising.

As a result of competition from Amazon, Walt Disney, and Warner Bros., Netflix is losing customers. The HBO Max service from Discovery. The company lost 1.3 million customers in the US and Canada last quarter. The ad-supported tiers are already driving growth for services like Disney's Hulu, Warner Bros.'

HBO Max, and Comcast's Peacock. In budget versions of services like HBO Max, the option of downloading is also disabled. As part of Netflix's ad expansion, the app includes hidden references to tailoring ads to specific users. The next step is to set up your advertising experience.

Our team is just waiting for a few details from you so we can personalize your Netflix ads. The process will be quick, we promise! ” one message reads. With the ad-supported tier, customers scared off by the rising prices will have an affordable alternative.

In the US, the service's premium level, which offers 4K resolution and up to four streams at once, costs $20 per month. As Netflix has previously stated, the ad-based service will be available across multiple regions, and Microsoft will be its sales and technology partner.