Netflix with ads, will there be low-cost subscriptions in November?

2022-09-06 18:59:15Lifestyle SHKRUAR NGA REDAKSIA VOX
Netflix with ads, will there be low-cost subscriptions in November?
Netflix

The latest rumors speak of an earlier launch compared to the first months of 2023, in five different markets. The goal is to defeat the rival Disney.

Netflix with ads: so when?

The long-awaited ad-free Netflix subscriptions may arrive even earlier than expected. According to what the Wall Street Journal and Variety have reported, the service may launch on November 1 in several markets, including the US, Canada, the UK, Germany and France. The platform said in July that this could be achieved as early as 2023.

It precedes Disney +

The time squeeze would have a specific objective, namely to get ahead of competitor Walt Disney, whose streaming services have since outnumbered Netflix's subscribers. The US launch of Disney + Basic is scheduled for December 8, a subscription for $ 7.99 per month with the presence of ads, which will represent the cheapest offer compared to Disney + Premium, the version without ads. According to other recent interventions, the price of the new Netflix solution should fluctuate between 7 and 9 dollars per month, compared to more than 15 paid for an ad-free subscription.

What will the ads be like?

In addition, some details on the structure of these ads are also emerging: they will consist of 15 or 30 seconds positioned before or during the start of the show. In total, 4 minutes per hour should not be exceeded. But many advertisers complain about the economic aspect. In fact, Netflix aims to pay $65 for every 1,000 people who see the ads, a figure that far exceeds the industry's estimated $20. Additionally, the Reed Hastings-led company wants to set a maximum threshold of $20 million per year in advertising investment for a single company. It should be remembered that for all activities related to the assignment of advertising spots, the platform had signed an agreement with Microsoft in recent months.

Where did the idea come from?

The idea to launch subscriptions with ads was advanced after the data of the first quarter of 2022, in which a decrease of 200 thousand subscribers was recorded, the first decline in the last 10 years of the company's history, which had also led in the reduction of 150 employees. A decline, confirmed by the fall of 960,000 subscribers in the second quarter, which the company attributed to an increasingly high cost of subscriptions, and therefore the hypothesis of cheaper offers, and the practice of joint accounts, against which the company has promised a much more restrictive policy.


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