Netflix: the price of the advertising plan revealed

That Netflix plans to launch an ad-supported plan is nothing new, but new information now points to a price range for the service.

According to Bloomberg information, Netflix is ​​pricing the ad-funded plan worth between $ 7 and $ 9 dollars, which would be about half the price of the cheapest streaming plan in the US, which is $ 15.49. monthly.

Therefore, Netflix would be able to attract new subscribers willing to watch the ads, in exchange for a much lower monthly cost. The company, which turns 25 on Monday (29), is preparing to introduce advertising into its services for the first time, doing its best to keep the balance between reaching a more cost-conscious audience and at the same time offering a pleasant experience.

The company’s idea is to sell around four minutes of advertising per hour in this new plan, which is fewer than other streams, which offer between 10 and 20 minutes per hour, which frustrates users due to the very large amount of advertising. Ads will appear before and during some content, but not after.

Additionally, Netflix has already warned advertisers that it will initially be doing smaller deals, so as not to over-commit and end up overloading subscribers with ads.

The launch of the cheapest advertising plan will take place in the final months of 2022 in at least half a dozen markets, according to Bloomberg.

Over the years, Netflix has sold itself as a consumer-friendly alternative to cable TV, with the ability to watch ad-free series and movies on-demand and the ability to easily cancel them.

But streaming suffered the loss of subscribers, which led Netflix to finally surrender to ads. The company believes a cheaper plan, even with advertising, could appeal to a new range of consumers and offer unsubscribe users a cheaper alternative to remaining subscribers.

According to Ampere Analytics (via Bloomberg), this new price range is expected to generate $ 8.5 billion annually globally for Netflix, including ad sales and monthly fees.

In addition to the smaller amount of ads, Netflix intends to avoid using too much targeting to tailor ads to the consumer, and most people will see the same ads, with Netflix striving to avoid constant repetition of ads.

This will be managed by Microsoft, which has been awarded the right to offer Netflix’s exclusive advertising technology.

The Netflix Post: Ad Plan Price Revealed First Appeared on Digital Look.

Source: Olhar Digital

Emily

Emily Jhon is a product and service reviewer at Gossipify, known for her honest evaluations and thorough analysis. With a background in marketing and consumer research, she offers valuable insights to readers. She has been writing for Gossipify for several years and has a degree in Marketing and Consumer Research from the University of Oxford.