The Netflix streaming service will launch a new subscription modality with advertising in November, for a price of 5.49 euros per month, with a limited number of movies and series and making it impossible to download content.
Initially, the “Basic with Ads” plan will be available in 12 countries: Germany, Australia, Brazil, Canada, South Korea, Spain, the United States, France, Italy, Japan, Mexico and the United Kingdom.
“We are confident that now that Netflix is available from €5.49 per month, we have a price and plan for all fans. While this is just the beginning, there has been tremendous interest from both consumers and the community. advertising community. we couldn’t be happier. As we learn and improve, we will roll out this plan to more countries,” a Netflix spokesperson said.
For Greg Peters, it is a “magnificent opportunity” for advertisers, “to be able to reach a diverse audience – including younger viewers, who watch less and less traditional television – in a great environment to see ads in high definition.”
There will be an average of 4-5 minutes of ads per hour and advertisers will be able to prevent their ads from appearing on content that may be incompatible with their brand, in the case of sex, nudity or graphic violence.
In July, Netflix announced a partnership with Microsoft to develop its new low-cost, ad-supported subscription model.
The decision to create a low-cost subscription plan comes after Netflix’s loss of competitiveness in the streaming platform market led to a slowdown in the company’s growth rate and a reduction in its workforce.
Netflix lost almost a million subscribers (970,000 accounts) during the second quarter of 2022, during which it made a net profit of 1,441 million dollars (about 1,472 million euros), the company revealed in its last earnings call at Netflix on July 19.
The company also highlighted that the transition from traditional television to streaming is getting faster.
“In the United States it has surpassed open and cable television,” he said.
In August, the Walt Disney Company also announced that later this year its most popular streaming platform, Disney+, will offer an ad-supported plan and an ad-free option at a higher price in the United States.
Source: TSF
