Netflix (NFLX) has revealed key details about upcoming ad support tiers.The company’s advertising plan, dubbed Basic with Ads, will officially launch at 9 a.m. on Nov. 3 at $6.99 a month in the United States.This is just before Disney’s December 8 ad-based offer, priced at $7.99.”Basic with Ads” is available in 12 countries including the U.S., Britain, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico and Spain, complementing Netflix’s existing ad-free class.Tier will roll out at several stages, with Canada and Mexico the first two countries to access new offers on November 1st.All other eligible countries except Spain have a start date on November 3rd and Spain completes its rollout on November 10. Prices vary by country.As for the US $6.99 price tag, Netflix said it didn’t “significantly fix” competitive pricing ($7.99 for Disney+ with ads), but it’s worth the entertainment it can offer its members.”It also ignores concerns about consumers dropping to the advertising level and estimates that total revenue will be neutral to positive for comparable plans.”We’re not trying to lead people into any kind of planning,” Netflix’s COO Greg Peters said in a phone call before the announcement. “As a result, I think the revenue model will be fine.” “Everything people like about Netflix is now using a fixed price model for advertisers (I won’t reveal the cost per thousand dollars) but we can adjust that model in the future.”According to Netflix Worldwide Advertising President Jeremi Gorman, the platform has almost sold out its “advertising” inventory worldwide for launch.”Basic with Advertising” provides an average of 4-5 minutes of advertising per hour with strict frequency limits so that members don’t see the same advertisement over and over again. At launch, ads run 15 to 30 seconds long, some before the program starts, some as intermediate role ads.” In a grand scheme, it’s a very consumer-friendly approach,” Peters said, stressing that the advertising experience was “thought out.”Netflix is now using a fixed-price model for advertisers (which will not disclose the cost-per-thousand rate), but said it could adjust the model in the future.Netflix said advertisers’ users are limited to film and television shows due to licensing restrictions, and estimated that about 5 to 10 percent of all programming is not available in some countries. The platform said it was considering reducing the number over time.Also, the user cannot download the title due to “technical complexity”.”In short, Basic with Ads is everything people like Netflix, and it’s a low price with some ads in between,” the company said in a blog post, praising Microsoft’s partnership with Microsoft for its rapid six-month sales. Microsoft generated $10 billion in advertising sales last year and was announced as a streaming technology and sales partner in July.The company said it offers a wide range of targeting capabilities across countries and genres, while allowing advertisers to keep ads from appearing in content that may conflict with brands (gender, nudity, graphic violence, etc.).In addition, Netflix plans to rely on Nielsen’s digital advertising ratings in the U.S. to help advertisers better understand how the platform can reach target users. It will be available sometime in 2023.The answer to the Netflix question?Wall Street is quite optimistic that advertisers could be the solution to Netflix’s myriad problems.Earlier this week, JPMorgan analyst DougAnmuth estimated Netflix could drive 7.5 million subscribers in the U.S. and Canada in 2023 and generate $600 million in advertising sales.Anmuth expects Netflix’s U.S. and Canadian segments to boast 22 million subscribers and drive $2.65 billion in advertising sales by 2026.However, Netflix has enjoyed quite a few Wall Street upgrades in recent weeks as a direct result of its upcoming launch, but the streaming giant’s stock has fallen 63 percent so far in 2022.
Netflix (NFLX) has released key details on the upcoming advertising support group.The company’s advertising plan, called Basic with Ads, costs $6.99 a month in the United States and is scheduled to officially go on sale at 9 a.m. on Nov. 3. This is ahead of Disney’s advertising base offering ($7.99) on Dec. 8.”Basic with Ads” is available in 12 countries including the U.S., Britain, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, and Spain.The hierarchy is Canada and Mexico’s first two countries to access the new service on Nov. 1, with all other eligible countries except Spain scheduled to see its release date on Nov. 3, and Spain scheduled to complete its launch on Nov. 10. Prices vary from country to country.Netflix said it “doesn’t strongly fix” pricing based on competition ($7.99 including Disney+ ads) against the $6.99 price list in the U.S. and rather provides entertainment value that can be communicated to its members.
It’s official. Netflix’s advertising-ready tier is set to cost $6.99, and Netflix has revealed key details about its advertising-ready tier financing, which is set to launch next month.yahoo.com
It’s official. Netflix’s advertising-ready tier is set to cost $6.99, and Netflix has revealed key details about its advertising-ready tier financing, which is set to launch next month.yahoo.com
