Last month, Netflix announced a new subscription plan, called Basic with Ads, that would be launching in 12 countries from November 3. In the United States, it will be available for customers to subscribe to from 9 a.m. PT and will cost $6.99 per month. At the time of the announcement, Netflix said it was now confident that it had a price and plan for every fan.
The 12 countries included in the initial rollout are:
As younger people tend to watch less TV, they’re not as exposed to TV advertisements as older people. Netflix says that the Basic with Ads plan is a great thing for advertisers, as they will be able to show their products and services to people who may not have otherwise seen the ad. Viewers on this plan will see 15 or 30 second ads that play before and during shows and films.
Advertisers that market to Netflix viewers will be able to control which programmes their ads are shown on, they can target specific countries and genres and prevent their ads being shown on content containing things like sex, nudity, or graphic violence. These controls should help brands avoid any controversy and help them target audiences that will be most receptive to their ads.
With household budgets being squeezed for a myriad of reasons right now, Netflix’s Basic with Ads plan could help some people retain their Netflix subscription. We should start to hear about how the plan is doing in one of Netflix’s earnings report, either the next one or the one after that.