Netflix reveals the launch date and pricing of the ad-supported tier that beats Disney – Deadline

Netflix is ​​undercutting Disney+’s price by a dollar a month as it prepares for a breakthrough expansion into ad-supported streaming.

The company announced that its new subscription tier, Basic with Ads, will cost $6.99 per month and launch in the US on November 3, more than a month ahead of Disney’s December 8 launch of the ad-supported version of Disney+ . Canada and Mexico will receive the new plan on November 1st and two days later it will go live in the US, Australia, Brazil, France, Germany, Italy, Japan, Korea and the UK, with Spain following on November 10th. In the US, the entry-level price is less than half the cost of the most popular tier, Standard, which is $15.49 per month.

Disney has announced both price increases and a new ad-supported version of Disney+. When this new tier launches on December 8th, it will be $7.99 per month, which is currently the single price for ad-free Disney+. After December 8th, ad-free Disney+ will cost $10.99, although many consumers will opt for the Disney+, Hulu, and ESPN+ bundle, which offers savings over the regular price of each.

In a blog post, Netflix COO Greg Peters said there will be four to five minutes of advertising per hour, with both series and feature films broken up by commercials. (Check out a video below showing what it will look like.)

Jeremi Gorman, Netflix’s head of global advertising, said the inventory is nearly sold out, with several hundred advertisers in the mix. When asked during a Zoom call with members of the press how much advertisers paid, she declined to provide details. In terms of categories, politics will be a notable no-fly zone considering how significantly they’ve risen in linear television in recent election cycles, along with others like guns, smoking, or plugs for any products and services that Netflix deems illegitimate .

When asked on the Zoom call to expand the plan for ads during films, Peters clarified that new films are coming to the service — particularly marquee originals like knife out 2 – “Will only have a pre-roll” of spots before the feature plays uninterrupted. “We’re going to try and keep that kind of cinematic model there,” which is how most of its competitors are doing. In contrast, films that “have been on the service for a while,” Peters said, will have a “more traditional” combination of pre-roll and mid-roll ads, albeit with “less frequent” breaks.

The extent to which the company has reversed its long-held position on advertising is hard to overstate. For years, co-founder and co-CEO Reed Hastings and other executives have denied Netflix would ever work with Madison Avenue, with Hastings citing his desire to avoid entanglements over privacy and other complications that have hamstrung Facebook and other digital giants. “We want to be the safe haven where you can explore, get stimulated, have fun and enjoy – and have no controversy about exploiting users with ads,” Hastings said in a 2020 earnings call.

This was during comparatively peaceful days, however. In 2020, as Covid shut down the world, Netflix saw a massive surge in subscriptions, adding 26 million paying customers in the first half of the year alone — the total for all of 2019.

This year, the impact of inflation and a deteriorating economy on consumers, along with intensifying competition in a subscription streaming race that Netflix once ran virtually on its own, have combined to create new headwinds. As Netflix reported two consecutive quarters of disappointing subscriber numbers — and even lost subscribers overall for the first time in more than a decade — that misfire sparked a dramatic sell-off in Netflix stock and led to a series of changes at the company. In addition to cost savings and a rationalization of staff, the company decided to change its attitude towards ads, recognizing the potential for additional billions in revenue. A partnership with Microsoft was announced and two prominent Snap executives, including former Hulu ad sales manager Peter Naylor, were recruited to lead Netflix’s branding push.

Not all programs contain ads when they start. The blog post noted that “a limited number of movies and TV shows will not be available” on Basic with ads “due to licensing restrictions we are working on.” During the press briefing, Peters said that the missing titles make up about 5% to 10% of the total pie. “It’s all based on deals, not on any particular studio,” he said. “And again, we will work to reduce that number over time.” Most previous agreements with content providers were “made in a timeframe where we have not yet considered introducing an ad-based tier.” As Peters noted at the beginning of the conference call, it’s only been six months since Hastings stunned Wall Street and the media business by seemingly throwing away a mention of the promotional plan during a quarterly conference call and the finalization of the go-to-market plan.

The blog post also noted that Netflix has partnered with DoubleVerify and Integral Ad Science “to verify the viewability and traffic validity of our ads,” beginning in the first quarter of 2023. Also next year, Nielsen will update its Digital Ad Ratings use in the US. This allows the metering company to provide a sense of how viewership is trending and eventually report the numbers through its long-in-the-works Nielsen ONE offering.

Downloads are not allowed in Basic with Ads and the resolution is 720p, not as sharp as the 1080p of Netflix’s standard plan, the most popular.

Take a look at the experience with advertising on Netflix with this example the company gave of what a spot before an episode of will look like Emily in Paris:

#Netflix #reveals #launch #date #pricing #adsupported #tier #beats #Disney #Deadline

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *