In its Q2 earnings report in July, Netflix revealed that it is considering a cheaper plan with commercials, and now the service is officially launching in 12 countries with this model. Earlier reports suggested that November 1 could be the day Netflix introduced their cheaper ad-supported subscription. The company has now confirmed the launch of its ad-supported plan for the following month.
Netflix Ad Plan Price, Availability
Netflix has announced in a blog post that the new package will be dubbed “Basic with Ads” and will initially roll out in 12 countries. Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States will be among the first to implement the plan in November.
The corporation assured its customers in a blog post that the news would not alter its future plans.
The monthly cost of the ‘Basic with advertisements’ plan in the United States will be $6.99 (about Rs 580). The cost in Canada is CAD 5.99 (about Rs 360), whereas in the UK it is GBP 4.99. (roughly Rs 465).
How Netflix’s Ad-Supported Plan Will Work
According to a blog post published by Netflix, the initial commercials will run for 15 to 30 seconds and will appear before or during viewing. Ads will play for roughly 4-5 minutes per hour on average. Netflix will roll out advertisements throughout the majority of its library, while a select few TV episodes and movies will be exempt from this due to licensing restrictions.
Netflix’s “basic with advertisements” package will only allow users to stream in 720p and not download any content. As far as current Netflix subscriptions go, nothing will change. The ad-supported plan will go out sometime next month, though when it will be made available to Indian customers is still unknown. There are currently three Netflix subscription tiers available: Basic, Standard, and Premium.
In a blog post, Netflix explained that Basic with Ads presents an interesting potential for advertisers because it allows them to access “a varied audience,” including younger viewers who increasingly don’t watch linear TV, in a premium setting with a seamless, high-resolution ads experience.
The statement from Netflix also included the information that the ad-supported scheme was developed in collaboration with Microsoft. With Netflix’s monthly plan starting at just $6.99, we’re positive that there’s a price point for every customer. Even though we’re just getting started, we’re delighted by the response we’ve seen thus far from consumers and advertising.