Streaming Giant Netflix Will Start Subsidizing Its Subscriptions With 15-Second Ads In November
Netflix’s ad-based subscription will be available for a lesser price in November and will be available for a lesser price. It looks like the time has come. Because we’re really at a pivotal point in our industry, COO Greg Peters says it’s great timing.
In November, Netflix plans to launch a new subscription plan that will be subsidized by ads and will debut in a couple of countries to kickstart the growth again. Basic plan with ads will now cost $6.99 in the US, which is $3 less than regular plan.
Thursday, Netflix’s chief operating officer Greg Peters made the same announcement.
We’re at this pivotal point in the evolution of the entertainment industry, Peters says. “Now streaming has overtaken both broadcast and cable for the amount of time Americans watch TV.”
This is the first time the OTT platform will offer an ad-discounted tier, which has been in the works for a while. It’s coming to Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, and Spain. Meanwhile, as AFP says, all shows and movies will be available as part of the new subsidized subscription, except for those requiring new licensing deals.
Basically, the videos are 15-30 seconds long, and Peters already said that they won’t have more than 4-5 ads per hour, including some frequency caps so users don’t keep seeing the same thing.
The ad-supported subscriptions are going to increase Netflix’s subscriptions, and it’s starting to take over traditional TV channels, which is kind of happening now. There’s also a chance Disney+, one of Netflix’s competitors, is going to release an ad-supported subscription soon.
According to Dallas Lawrence, senior vice president of media analytics company Samba TV, this will revolutionize premium advertising.
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