This Thursday, the 3rd, the new Netflix plan, called “basic with ads”, will arrive in Brazil. Despite this, the streaming service is still in talks with major studios about what content will be available by subscription, people familiar with the matter report.
For now, it is not yet known what content from external studies will be missing from the service. However, sources heard by the newspaper claim that the contracts have not yet been finalized between Netflix and the following studios: Disney, NBCUniversal, Sony Pictures, Warner Bros. Discovery and Lion’s Gate.
Disney does not produce original content for Netflix, but it does provide reruns of popular shows including “Grey’s Anatomy” and “How To Get Away With Murder”. NBCUniversal is a leading provider of original and library content for Netflix, including the drama “You”.
Sony Pictures, in turn, is responsible for the series “The Crown” and “Cobra Kai”, as well as selling films and reruns of “Breaking Bad” for streaming.
Of all these companies, the closest to signing a deal with Netflix is Warner Bros. Discovery. The studio makes original programs and sells library content for the company.
According to Netflix, the basic plan will include content that represents 85% to 90% of the views on the platform. However, he did not specify how much this represents in terms of the percentage of the library.
future of streaming
It’s been seven months since the streaming giant announced it was going into the advertising business. It will now be able to launch its service a month before rival Disney + launches its first floor with ads.
The company’s vision is to be able to increase subscriber and revenue growth after a tumultuous 2022. Within this strategy, ad plans are an effort to offer a cheaper service and still increase revenue.
Initially, the user will pay R $ 18.90 per month and watch four to five minutes of ads for every hour of content viewed. However, Netflix has taken a flexible approach that will allow both ad format and sales to evolve.
The debut of the service will serve as a thermometer to know if the plan will attract new users or how many customers from the more expensive plans will want to migrate to this new one. Netflix said its customers are generally loyal to its plans and that changing some users won’t have a negative impact on revenue.
However, competitor HBO Max found that about 23% of new subscribers to its new ad-supported plan, launched in September, were people who came from an ad-free plan, according to streaming service provider Antenna.
Promotional announcement
So far, Netflix has secured big-brand advertisers for the launch, such as Louis Vuitton, L’Oréal, and Nyx. However, the company ended up losing money during negotiations with advertisers. This is because these brands were reluctant to pay a high price for a business that has yet to be proven and that doesn’t offer smart targeting.
In the beginning, the streaming giant tried to charge around $ 65 for every 1,000 viewers it reached. However, some advertisers have ended up paying $ 45 to $ 55 for advertising time. However, it appears that Netflix has managed to charge more expensive brands that will have special positioning.
Advertising industry executives expect Netflix to be able to charge more if it improves its ad targeting capabilities and increases its ad tier subscriber base. For this, the company plans to collect information such as birthday and gender from users.
through The Wall Street newspaper.
The Netflix post: New plan with announcement arrives this Thursday in Brazil with anticipation appearing for the first time on Olhar Digital.
Source: Olhar Digital
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.
