October 13, 2022
Netflix Oct. 13 announced it is launching its much-anticipated ad-supported subscription streaming plan on Nov. 3. (9 a.m. PT) priced at $6.99 per month. That comes more than a month ahead of the Dec. 8 rollout of a rival ad-supported option at Disney+.
Netflix’s current basic plan without ads costs $9.99 monthly, with the standard plan priced at $15.49, and the premium option priced at $19.99. The streamer still offers its legacy by-mail DVD rentals, priced at $9.99 for one disc out at a time; $14.99 for two discs, and $19.99 for three discs rented concurrently.
The Netflix “Basic with Ads” service will be available in 12 countries, including the United States, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK.
The new plan has a few differences from Netflix’s existing basic plan. Video quality will be limited to 720p/HD (now for both basic with ads and basic without ads plans); average of four to five minutes of ads per hour; a limited number of movies and TV shows won’t be available due to licensing restrictions, and no ability to download titles.
“Basic with Ads is everything people love about Netflix, at a lower price, with a few ads in-between,” Greg Peters, chief operating officer and chief product officer, wrote in a statement.
At launch, ads will be 15 or 30 seconds in length, which will play before and during shows and films. To help advertisers reach the right audience — and are more relevant for consumers — Netflix is offering broad targeting capabilities by country and genre (e.g., action, drama, romance, sci-fi). Advertisers will also be able to prevent their ads from appearing on content that might be inconsistent with their brand (i.e., sex, nudity or graphic violence).
Netflix is partnering with and to verify the viewability and traffic validity of its ads starting in Q1 2023. To enable advertisers to understand how Netflix can reach its target audience, Nielsen will use its Digital Ad Ratings (DAR) in the U.S. This will become available sometime in 2023 and eventually be reported through Nielsen ONE Ads.
“Basic with Ads will launch just six months after we first announced the option of a lower-priced ads plan,” wrote Peters. “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community — and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time.”