In a bid to attract more subscribers and retain those it has on the platform, streaming giant Netflix is introducing an ad-supported plan in November.
“We now have a price and plan for every fan,” Netflix said in a press release on October 13, adding, “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead.”
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All about the Netflix ad-supported plan
It’s called ‘Basic with Ads’
The new plan is named ‘Basic with Ads.’ It will be launched in 12 countries — Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.
The plan will be introduced in Canada on November 1 and in Spain after the first week of the month. All other countries will get the new plan over November 3 and 4.
The ad-supported plan will be cheaper than existing Netflix plans in all markets. For instance, the ‘Basic with Ads’ plan will cost GBP 4.99 per month in the UK, where the current cheapest plan, without ads, is priced at GBP 6.99 per month.
It is also cheaper than similar plans by other streamers. While the ad-supported Netflix plan will cost USD 6.99 per month in the US, a similar plan by HBO Max costs USD 9.99 per month and one by Hulu costs USD 7.99 per month in the country. An upcoming ad-supported plan on Disney+, the streamer especially famous for its Marvel Cinematic Universe (MCU) content, will also be costlier than Netflix at USD 7.99 per month.
What subscribers cannot do under Netflix ad-supported plan
The ads will be 15 or 30 seconds long and will play before and during shows and movies. There will be an average of 4 to 5 minutes of ad per hour.
However, some TV shows and movies on Netflix will not be available under the new plan due to licensing restrictions. Subscribers of the ‘Basic with Ads’ plan will also not be able to download titles.
There will be no change for subscribers of the three original Netflix plans — Basic, Standard and Premium.
Netflix said that the plan will give advertisers “the chance to reach a diverse audience, including younger viewers who increasingly don’t watch linear TV, in a premium environment with a seamless, high-resolution ads experience.”
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Why is Netflix introducing the ad-supported plan?
The decision to introduce the new plan comes as the streamer faces stiff competition, especially from the likes of Apple TV+ and Amazon Prime Video in multiple markets.
Netflix lost over 1 million subscribers in the first half of 2022, as per a report by the BBC. Yet it is the world’s biggest streaming service with around 221 million subscribers who would log in to watch history-making K-dramas such as Squid Game or reality shows such as Bling Empire, among a host of other options.
Despite its growing subscriber count problem, Netflix — the pioneer of the subscriber-based system — has been long resisting an ad-supported plan.
The news of the ad-supported plan comes just ahead of the company’s scheduled announcement of its third-quarter earnings and an update of its subscriber count next week.
(Main image: Mollie Sivaram/@molliesivaram/Unsplash; Featured image: Dima Solomin/@solomin_d/Unsplash)
This story first appeared on Lifestyle Asia Singapore