According to reports, Netflix’s ad-supported tier will go live on November 1. According to Variety, the streaming platform is accelerating the launch of its lower-cost plans in order to compete with Disney+. The tier was supposed to go live in early 2023. However, given that Disney+ is releasing their own version of an ad-supported bundle on December 8 in the United States — Disney+ Hotstar already offers a free ad-supported plan — Netflix has brought it forward. Netflix’s upcoming ad-supported tier is expected to cost between $7 (approximately Rs. 560) and $9 (approximately Rs. 720) per month.
During their Q2 earnings call in July, Netflix revealed plans to launch the ad-supported tier “around the early part of 2023,” with the release targeting a handful of markets with “significant” advertising spend. According to Variety, the ad-based subscription plans will now be available on November 1 in a number of countries, including the United States, Canada, the United Kingdom, France, and Germany. The company intends to gradually roll out the service and monitor how consumers react to it. There is currently no word on an India rollout.
“We are still in the early stages of deciding how to launch a lower-priced, ad-supported tier,” a Netflix representative told Variety. The price cut is intended to attract new subscribers who are willing to watch a few advertisements in exchange for high-quality content. In the beginning, Netflix will reportedly aim for four minutes of commercials per hour, which will appear before and during the shows. But not after that.
As previously stated, Netflix’s ad-supported tier is expected to cost between $7 and $9 per month, which is roughly half the price that US audiences currently pay. Subscribers in the United States can get the Standard plan for $15.49 (approximately Rs. 1,237), which supports 1080p video streaming on up to two screens at once. Netflix has not provided any information about the streaming quality of their upcoming ad-supported tier.
In comparison, Disney+’s ad-supported plans begin at $7.99 (approximately Rs. 639), putting it roughly in the same ballpark as Netflix. According to Variety, the latter is seeking a minimum commitment of $10 million (roughly Rs. 79 crores) in annual ad spending from agencies.
To meet the November 1 deadline/launch date, Netflix wants to lock in advertisement purchases by September 30. “For the first phase of the ad tier’s rollout,” it concludes, “Netflix will not serve ads based on geography (except by country), age, gender, viewing behavior, or time of day.”
