Entering the Netflix world will be possible starting from € 5.49 per month. Less than the 7.99 euros needed now. The only condition will be to accept the advertising breaks. The Los Gatos giant has lifted the veil on its “ad-supported” package, which marks the definitive arrival of advertising on Netflix. The “Basic with Ads” plan will be available in 12 countries: Australia, Brazil, Canada, Korea, France, Germany, Japan, Italy, Mexico, the United Kingdom, Spain and the United States. It will start on November 3rd.
Lower prices, but also limitations
The plan, it was explained by Netflix, provides for those who join the possibility of accessing the contents interspersed with an average of 4-5 minutes of advertising breaks per hour. A lower-priced subscription, but also with limitations as a limited number of movies and TV shows will not be available due to licensing restrictions. In addition, there will be no possibility to download titles.
Challenge on the ground of traditional media
For Netflix it is a Copernican revolution, but the arrival of advertising is also the result of the intention to maintain the customer base – and even possibly increase it – avoiding the backlash of releases due to the increase in subscription costs. Certainly, what represents one more possibility for present and future subscribers, also poses itself as a headache for the world of traditional media which is going to find itself a very heavy competitor on the advertising cake. at launch, the advertisements will run for 15 or 30 seconds and will be inserted before and during the series and films.
As for the return on investment, the Vdo giant announced that it has partnered with Double Verify and Integral Ad Science to verify the visibility and validity of our advertising traffic starting from the 1st quarter of 2023.
The approach march
That it was getting to the point had become clear in the summer. First the choice of Microsoft and its technology for the distribution of advertising to introduce a “low-priced and advertising-supported subscription plan”, as declared by Netflix itself in mid-July. Then at the end of August the Los Gatos giant made official the arrival of two new managers: Jeremi Gorman, former chief business officer of Snap, as president of world advertising and Peter Naylor, vice president of sales for the Americas of Snap, to cover the role as vice president of advertising sales for Netflix