Netflix has finally released the official details for its new ad-supported tier, which will become available to subscribers in November.
Well, folks, we're at the end of an era. Netflix has just announced a new ad-supported tier after months of rumors following plateaued growth from the streaming giant. The new streaming tier will offer viewers a cheaper streaming option, though the discount comes with a few compromises in terms of content and video quality. The new ad-supported tier will cost $6.99 per month and will roll out in the United States on November 3, 2022.
The new tier, which will be called "basic with ads”, will include an average of four to five minutes of commercials per hour of content. Additionally, viewers will not be able to download movies or TV series. In addition to commercials, there will also be some restrictions on TV and film content due to licensing restrictions. Ads on the new tier will range from 15 to 30 seconds in length, and they will play both before and during Netflix content.
COLLIDER VIDEO OF THE DAY Companies advertising on Netflix will be able to prevent ads for their products from appearing on content that they find to be unsuitable. Additionally, beginning in 2023, Nielsen will measure audience reach using Digital Ad Ratings to help advertisers get an understanding of their content's analytics.The new lower price tier puts Netflix below Disney+'s price, a strategic move in the increasingly competitive world of streaming.
Chief Operating Officer Greg Peters said of the new, less expensive tier, “we want to offer consumers choice and figure out what the best offering is for them." The new less expensive tier is certainly welcome news for consumers facing a rise in the price of, well, everything. Maybe a lower price might be what Netflix needs to stay relevant in the world of streaming. The advertising tier first becomes available in Canada and Mexico on November 1, 2022.
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