Netflix will launch the ad-supported plan on November 1
Netflix has been in the news recently due to its announcement of a new, less expensive plan that is financed by advertisements. The company made this announcement in an effort to increase its member count and combat the company’s falling revenue. A new story implies otherwise, and it’s possible that we’ll formally see it in November of this year, even though it’s scheduled to premiere in the early part of 2023. According to a report that was published not too long ago in The Wall Street Journal, Netflix is planning to debut its ad-supported plan on November 1st, as was communicated by many advertisers. People have thought that the decision to release the plan earlier could be a way to compete with Disney+, which is expected to release its advertising plan in December.
The Netflix plan that is financed by advertisements is expected to first start in the United States of America, followed by Canada, the United Kingdom of Great Britain and Northern Ireland, France, and Germany. Netflix has chosen to remain silent on the matter for the time being and has issued the following statement regarding the matter: “We are still in the early days of deciding how to introduce a lower-priced, ad-supported tier, and no decisions have been made.” In addition to this, we have additional details on the advertising model used by Netflix. According to recent reports, Netflix may charge marketers $65 CPM (cost per mille or cost per thousand), which is quite a bit higher than the typical cost of $20 CPM. It is expected that the OTT platform will eventually seek an annual spend of around $20 million and charge around $80 CPM.
It is likely that negotiations will take place, and it is currently unknown what terms Netflix and the advertisers will agree to. It has been believed that Netflix intends to reduce the amount of time spent on advertisements to four minutes per hour, which is significantly less. In addition to this, it has placed former employees of Snap Inc., Jeremi Gorman, and Peter Naylor, in leadership roles inside its advertising business. It has been reported that the new plan that is backed by advertisements will cost between $7 and $9, but the price may be lower in India.
There has been previous speculation that the plan will not cover all of Netflix’s material and that it may also refrain from presenting advertisements in parts of Netflix’s content. There is a possibility that there will not be an option to download movies and television series in order to watch them offline, and the plan might only support a 480p resolution. We are still awaiting the disclosure of specific specifics, and if Netflix is aiming to start in two months, we anticipate that it will do so rather soon. When we learn something new about this, we will be sure to communicate it to you. So, keep tuned, and do let us know in the comments below if you are willing to acquire the cheaper plan from Netflix that includes advertisements if it is offered.