The competition is leading the way: Amazon (with Freevee) and Disney Plus (in the US) are already working with ad-supported channels and subscription models. Now Netflix is following suit.
After the streaming service experienced a sharp decline in subscribers this year, a lower-priced subscription model was announced a few months ago. Now Netflix has announced details of the new subscription level.
What is Netflix’s new subscription model?
This is an extension of the basic subscription, which will be offered at a lower monthly price for subscribers thanks to advertising placements. The whole thing will simply be called “basic subscription with advertising”.
The basic subscription with advertising is supposed to offer the functions of the conventional basic subscription, but with a few differences. First, the obvious: There will be a total of about 4 to 5 minutes of advertising per hour.
The spots will have an average duration of 15 to 30 seconds and will be played at the beginning and during the show.
Also, the download function will be dropped and some movies and series will “not be available for licensing reasons.” According to Netflix, however, they are working on expanding the program in this regard.
In addition, both the basic subscription and the new basic subscription with advertising will have 720p/HD video quality. Previously, the basic version had a standard resolution of 480 pixels.
As before, the new subscription model is to be available for multiple TV and mobile devices and can be changed or cancelled at any time.
When will the ad-financed subscription be available and how much will it cost?
The company was initially planning to start offering the service in 2023, but Variety reported last week it had been bumped to 1 November in order to get ahead of Disney+’s planned launch of an ad-supported tier in December.
The basic subscription with advertising will be available in a total of 12 countries. The monthly price is 4.99 euros. That is 3.00 euros less than the normal base price. Nothing will change for anyone who already has a subscription – whether Basic, Standard or Premium – unless they want to switch their subscription.
According to reports, Netflix’s service will launch in the US, France, Germany, Australia and Canada among other places, and is expected to be priced between US$7 and $9. The most basic Netflix subscription now costs US$9.99 or $15.49 for a standard subscription.
“We are confident that with Netflix starting at 4.99 euros per month, we have a suitable offer for everyone at a suitable price. Although we are still at the very beginning, we are pleased about the interest of users* and the advertising industry and are excited about what lies ahead.”