Netflix: Formula is coming to the US with ads, and it’s not good news

Netflix: Formula is coming to the US with ads, and it’s not good news

Netflix’s new bundle with integrated advertising is becoming clearer. According to a new report, it will cost between $7 and $9 per month Bloomberg. That would be about half of Netflix’s most popular ad-free plan, which costs $15.50 a month. This corresponds to the Essential package at €8.99 per month and the Standard package at €13.49 per month.

The report says the new offering will feature about four minutes of advertising per hour, and that will run before and during series and shows, but not after.

For now, the idea is to place ads on Netflix’s home series like Stranger Things and other licensed ones. The ads will not feature in children’s series or original movies such as Knives Out 2, the report said. Ads won’t be offered based on a subscriber’s profile, and Netflix wants to avoid endlessly repeating ads like some competing services do.

This offer is expected to be launched in the last three months of 2022. The report says at least six markets will have the package at launch, but doesn’t name any specifically.

Details of the package are also being leaked as Netflix holds meetings with potential advertisers, according to the report. Nothing is set in stone yet, so what has been reported should be taken with a grain of salt.

Netflix announced the creation of a new formula with integrated advertising, after a decline in the number of subscribers. The idea is to encourage people to come back – or sign up new subscribers – at a lower price in exchange for advertising.

according to Ampere AnalyticsThe data analytics company said the new offering could bring Netflix $8.5 billion a year by 2027 from subscription fees and advertising revenue.

Earlier this year, Netflix signed a deal with Microsoft that makes the Xbox company the official technology and business partner for this new streamer’s advertising package.

Source: allocine

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