If you want to pay a little less for Netflix you will soon be able to do so – but you will have to watch some ads to do so.
The streaming giant will launch an ad-supported option in 12 countries around the world, including Brazil. The new tier, called “Basic with Ads,” will cost $6.99 a month in the US and BRL 18.90 in Brazil.
“We are confident that with Netflix starting at $6.99 a month, we now have a price and plan for every fan.,” the company said in a statement. “While it’s still very early days, we’re pleased with the interest from consumers and the advertising community – and we couldn’t be more excited about what’s to come.”.
What will the new format look like?
The ad-supported tier will have between 4 and 5 minutes of ads per hour, each 15 or 30 seconds long, that will play before and during TV shows and movies. Also, users of this tier will not be able to download TV shows and movies, and “a limited number” of titles will not be available at launch “due to licensing restrictions”.
Netflix has also partnered with Nielsen, which will measure the streamer’s audience using its Digital Ad Ratings product starting next year. The idea of an ad-supported tier was first launched in April, with co-CEO Reed Hastings revealing that the streamer was considering adding such a tier.”in the next one or two years”.
Netflix had to resort to advertisements to follow
The arrival of ads on Netflix took a long time to happen. In fact, we cannot understand how the platform has gone so long without using advertisements. That’s because the company has no other sources of income like some giants in the market. Prime Video and Apple TV+, for example, have Amazon and Apple behind them, funding their eventual problems and adventures.
The same is true of HBO Max, which had the HBO channel and Warner behind it. Star+ is another platform that has a big company behind it. These companies have been working and producing advertising for a long time.
Advertising should ensure positive jumps and more production for Netflix
In this way, Netflix was alone in a utopian world. For them, there wasn’t a big channel, store or company behind it. It was “just” a platform for streaming producing and distributing content on a large scale and making money mostly from subscriptions. The problem is that, at the pace the company was creating, subscriber plans alone weren’t enough. Thus, there is no retail (like Amazon) or the sale of electronics (like Apple) to pay off debts and projects.
Bringing in ads, then, is a natural and acceptable choice. For the good or for the bad, anything is consumed without advertisements. And Netflix can increase – and a lot – revenue. This is because advertising on the platform would be like a “cannon shot” at a very interesting target audience. It is a large portion of people of all ages and places. Any company in any industry would love to advertise a few seconds on the largest streaming of the world.