Netflix has announced that it is going to start running ads on its website and on its app. This is a big change for the streaming service, as it has always been a bit of a mystery as to how the ads will work. Netflix has said that the ads will be “targeted at people who are watching Netflix and want to find out more about what’s new and upcoming on our service.” The company also said that the ads will be “short, relevant, and effective.” This change comes as a bit of a surprise, as Netflix has always been pretty tight-lipped about how its advertising plans work. However, it is possible that this change was made in order to appease advertisers who have been asking for more attention from Netflix.
Netflix has revealed its new “Basic with Ads” plan, which will be a new option alongside the existing Basic ($9.99/month), Standard ($15.49/mo), and Premium ($19.99/mo) plans. It will be priced at $6.99/mo, a $3 difference from the Basic plan. You’ll be able to sign up starting November 3 at 9 AM Pacific Time (12 PM ET), if you live in the United States, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, or the United Kingdom.
There are three differences with the new plan compared to the typical Netflix experience (the Basic plan). You will see 15 or 30-second ads before and during shows and films, “a limited number of movies and TV shows won’t be available due to licensing restrictions,” and downloading for offline play is not available. Advertisements will appear an “average of 4 to 5 minutes of ads per hour,” which is still much better than cable TV, but not great.
It’s not clear yet how popular the Basic with Ads plan will be with viewers, especially considering it’s only $3 less than the existing Basic plan. The plan could be an upselling strategy more than anything else — the lower $6.99 price generates more signups, and when people get sick of the ads, they might be more likely to upgrade to a more expensive plan instead of cancelling.
You’ll be able to sign up for the new plan at Netflix.com once it arrives on November 3. That same day, the Basic plan is being upgraded to 1080p, the same resolution as Basic with Ads.
Source: Netflix
