Netflix avoided placing ads on its service for a long time, but due to loss of revenue and subscribers, it finally decided to launch a special rate this year.
Starting November 3, the Ad-supported Basic plan is already available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, UK, USA and will be launched on November 10 in Spain. The cost of such a subscription for US Netflix users is $6.99 per month.
The tariff on average assumes the display of 4-6 ads per hour. Their duration is from 15 to 30 seconds, and it is planned to place ads before and during viewing – without the “skip” or “rewind” functions.
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Netflix has launched a new plan in partnership with Microsoft, choosing the company as a “Global Ad Technology and Sales Partner.” In the US, Netflix will also partner with Nielsen (a metering company that studies TV viewing in many countries around the world, including Ukraine) to provide advertisers with information about the ratings published through the Nielsen One platform. Netflix also said it will not use user data to create targeted ads outside of the platform.
As with the similar ad-free option, TV shows in the Basic with Ads plan will be broadcast at 720p resolution. But now users are offered a limited library of movies and series – due to licensing restrictions (this problem is being solved now). Shows that are not shown will have a padlock icon.
Also, the tariff does not include the ability to download content for offline viewing.
Basic with Ads does not yet work on some devices, such as Apple TV and Chromecast (older than Google TV). Interestingly, the launch of streaming ads, as well as the lack of support for Apple TV, coincided with the release of Apple’s third-generation 4K set-top box, which will go on sale in stores tomorrow. But what about the new one, what about older models, you can only use more expensive service tariffs.
Netflix says that for Apple this is a temporary problem that they promise to solve as soon as possible. Since Basic with Ads works on iPhone and iPad, this doesn’t seem to be the result of a wider dispute between the companies.
In general, the new ad tier is available on Amazon Fire TV, Android, Chromecast with Google TV, iOS devices, numerous game consoles, and smart TVs. Not mentioned in the list are Roku and the Xbox console, but that could just be an oversight.
The Netflix website also notes that for almost the entire line of older Google Chromecast devices, the new tariff is not available. An exception is made for the latest Chromecast with Google TV (4K) and Chromecast with Google TV (HD).
Netflix also notes that the Basic plan with ads on phones or tablets requires Android 7.0 or later.
The new plan is not available for the PlayStation 3 either – although 10 years ago, the Sony console was the most popular device for streaming Netflix.
The cheaper ad-supported fare on Netflix came in response to a sudden downturn for the service , which lost more than 1 million subscribers in the US and Canada earlier this year and saw its share price tumble in response to investor fears that the period of rapid growth is over. But Netflix isn’t the only one delving into ads—Disney Plus will launch a $7.99 ad-supported subscription on Dec. 8 ($1 more than Netflix).
Netflix previously revealed that it would charge additional monthly fees from early 2023 for customers who share their login credentials with the service . The company does not provide details on the amount of penalties. Although, if they follow the scheme of the pilot program launched in Latin America – “one quarter of the base rate”, then the financial penalty should be about 3-4 US dollars.
For those who want to avoid this fate, Netflix is introducing the Profile Transfer Account Migration tool , which will transfer additional user account data (watch history, recommendations, etc.) to their new independent subscription. The new feature has already begun rolling out to Netflix users, and email notifications will be sent as it becomes available to specific people.
Source: The Verge 1 , 2 , 9to5google
