Netflix to roll out cheaper subscription plan with ads on November in more than 10 countries.
Netflix announced a discounted subscription with advertisements for $6.99 for the “Basic with Ads” which will launch in November in a number of countries including the United States, Brazil, Germany, Japan and Korea, over 10 days.
photo (yugatech)
According to the streaming site, this is a way to jumpstart their recovery period for its reported loss of 970,000 subscribers in the second quarter and attract new subscribers with its discounted price.
"We at Netflix have a huge opportunity ahead to grow our unit and to attract more subscribers. And part of that is having a wide range of pricing plans," chief operating officer Greg Peters said.
The “Basic with Ads” plan will include four to five minutes of advertising per hour, 15-30 seconds long per ad, with newly- released films will have limited advertising to preserve the cinematic experience.
With most of the movies carrying pre-roll and mid-roll ads, new movies will only carry pre-roll ads, Peters said.
“We are looking at a very light ad load with no more than four to five minutes of ads per hour, and including some very tight frequency caps so that members don’t see the same ad repeatedly,” Peters said.
Aside from the ads, Peters also revealed that about 5 to 10 percent of Netflix’s programming will not be available in the alternative plan because of licensing restrictions.
The newly rolled plan will debut in Canada and Mexico on Nov. 1, and in the United States, Brazil, United Kingdom, France, Italy, Germany, Australia, Korea and Japan on Nov 3.
Disney+, Netflix’s streaming rival, is also expected to launch its own ad-powered subscription in the near future.
“These launches are going to create the biggest premium advertising space in more than a generation,” said analytics company Samba TV senior vice president Dallas Lawrence.
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