In November, Netflix users worldwide can access the new low-cost tier.
We are at the end of an age, friends. After months of speculation, Netflix just announced a new ad-supported tier. This follows a slowdown in streaming service growth. While the new streaming tier offers a cheaper option for viewers, there are some compromises in video quality and content. The new ad-supported streaming tier will be available in the United States starting November 3, 2022, at $6.99 per month.
The new tier will have an average of 4 to 5 minutes of commercials per hour. It will be called “basic without ads”. Viewers will also be unable to download TV series or movies. Due to licensing restrictions, there will be restrictions on film and TV content. The new tier’s ads will be between 15 and 30 seconds long and play before and after Netflix content. The new tier will result in a decrease in video quality for viewers, with the resolution dropping from 1080p up to 720p.
Advertisers on Netflix can block ads for their products appearing on the content they consider inappropriate. Nielsen will also use Digital Ad Ratings to measure audience reach and help advertisers understand the analytics of their content. This is expected to begin in 2023.
Netflix’s new lower price tier places Netflix below Disney+, which is a smart move in an increasingly competitive streaming market. Netflix, the original streaming content leader, is now challenged by platforms like Paramount+ and HBO Max, which have successfully combined their extensive library of fan-favorite properties with new content to increase viewership. Netflix has had a challenging year, with a decline in subscribers in the first quarter of this fiscal year.
Greg Peters, Chief Operating Officer, stated that the new, lower-priced tier was designed to give consumers options and help them choose the right offering. Consumers seeing an increase in prices will be happy to hear that the new tier is less expensive. Netflix might need a lower price to remain relevant in streaming. On November 1, 2022, the advertising tier will be available in Canada and Mexico. On November 3, 2022, Australia, Brazil and Germany will follow suit. Netflix will launch the advertising tier for Spain on November 10, 2022.