Netflix ad-supported plan rolling out in November at USD 7 per month

By Ayushi Garg  | Date: 2022-10-14

Netflix ad-supported plan rolling out in November at USD 7 per month

Netflix Inc. is reportedly planning to launch a streaming plan with advertising for about USD 7 per month in November in an effort to entice new subscribers after the streaming giant lost a substantial number of users in the first half of the year.

The price of the Basic with Ads plan is USD 6.99 which is USD 3 less than Netflix's most affordable tier without advertisements. Over the course of ten days, the new option will be introduced in 12 nations, including the US, Brazil, Japan, Germany, and Korea.

According to the streaming platform, subscribers to the plan will view four to five minutes of advertising every hour. Besides, advertising for newly released movies will be kept to a minimum to protect the viewing experience.

Netflix Chief Operating Officer Greg Peters cited that because of licensing constraints, 5% to 10% of Netflix's content will not be available on the ad-supported substitute. Interestingly, Netflix shares were up by 5.4% at USD 232.86 after the announcement whereas prior to it, the company's shares dropped 62% this year.

For years, Netflix officials had vehemently rejected including advertisements in their service. However, when the business shocked Wall Street by losing subscribers in the first quarter and projecting further defections, they declared a change of heart in April.

According to Peters, Netflix has a fantastic potential to expand its business and draw in additional subscribers by offering various pricing schemes. Notably, the company will disclose its quarterly earnings along with estimates for the next quarter.

Analysts stated that by the third quarter of 2023, Netflix hoped to reach 13.3 million ad-supported viewers in the United States.

In similar developments, other streaming services, such as HBO Max from Warner Bros. Discovery and Hulu and Disney+ from Walt Disney Co., already provide or intend to offer cheaper ad-supported choices. For plans with advertisements, those services run between USD 8 and USD 10 per month.

Source Credit: https://www.channelnewsasia.com/business/netflix-ad-supported-plan-launch-november-7-month-3006791

About Author

Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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