After Netflix co-CEO Ted Sarandos, june confirmation that an ad-supported tier would be coming to the service, the company today released details about its new Basic with Ads subscription plan.
Netflix Basic with Ads will cost $6.99 / £4.99 a month when it launches on November 3 in the US and UK. The tier will also be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico and Spain, with Canada and Spain having a head start with the November 1 launch.
According to a Netflix corporate blog post announcing the ad-supported tier, the new offering will have no impact on pricing for its current plans, which range from $9.99 to $19.99 per month in the US and £10.99 to £15.99 in the US. UK.
The post noted that the ads will be 15 or 30 seconds long and will appear before and during broadcast programs. Overall, viewers can expect to see 4-5 minutes of ads per hour. Similar to the service’s current Basic plan, video quality will be limited to 720p HD instead of 4K with HDR available in the Premium tier.
Not all current programs will be available at the ad-supported level “due to licensing restrictions,” according to Netlix. As for the number of shows blocked, the company estimates that “about 5% to 10% of general programming will not be available depending on the country”.
Netflix’s post also confirmed our fears that Basic tier users with Ads will not be able to download shows, a feature provided to Basic, Standard and Premium subscribers.
Analysis: Netflix with ads was inevitable
We cannot say that we did not foresee this. For the past two years, Netflix has been struggling to keep up with new streaming competition from Disney, HBO and other entertainment giants. The company’s subscriber base plummeted in the first half of 2022, causing it to lay off employees and cancel productions that were in progress, particularly in the animation category.
Netlix’s new ad-supported plan arrives just a month before the launch of the Disney+ ad-supported tier, which, at $7.99, will represent a more expensive option for those looking to contain home streaming costs amid inflation. and economic strain.
For some viewers, omitting programs from the ad-supported tier can be a deciding factor, as many subscribe based on comments about a specific program. Yes, maybe not everyone wants to watch Jeffrey Dahmer’s Tapesbut I can’t transmit Weird stuff or Seinfeld after forking more than one monthly fee? No thank you!
Not being able to download shows will also be an issue, as many take advantage of this feature to watch shows while commuting or other travels in environments where Wi-Fi or cellular services can be spotty. Spending more money for one of Netflix’s higher-priced ad-free tiers solves that problem, of course, but you go back to paying a premium.
With the addition of the new plan, Netflix is now like any other streaming service that is willing to put its shows with ads. The move may bring new subscribers to the company, but it certainly won’t help differentiate it.
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