Netflix Confirms Ad Tier Launch In November: Here’s Everything You Need To Know

Netflix ad tier plan
Image: Netflix

Netflix has evolved with the changing media landscape to become one of the industry’s leading media companies. Despite being one of the most prominent streaming services over the last decade, Netflix has faced stiff competition from newcomers such as Hulu, Disney+, and Prime Video.

This year marked the first time they have lost subscribers every quarter since launching their streaming platform. Thus prompting many in the industry to speculate on how far they could potentially fall. Netflix has responded by increasing its financial expenditures, focusing less on blockbuster franchises like The Gray Man’s spy thriller universe, and introducing a cheaper, ad-supported tier.

Netflix’s ad-supported plan and details

Today, Netflix revealed the details of its ad-supported plan. The Basic with Ads tier will cost $6.99 per month in the United States. It will be available on the platform on November 3 at 9:00 AM PST. This tier will also be available for $5.99 per month in Canada and £4.99 per month in the U.K. The plans will also be available in Australia, Brazil, Germany, Italy, France, Japan, Korea, Mexico, and Spain.

Image: Netflix

The new “basic with ads” tier will include four to five minutes of commercials per hour of content. Furthermore, viewers will not be able to download movies or T.V. shows. Aside from commercials, there will be some restrictions on T.V. and film content due to licensing issues. Ads on the new tier will run for 15 to 30 seconds. It will appear both before and during Netflix content. Viewers will also notice a drop in video quality as the resolution drops from 1080p to 720p.

Companies that advertise on Netflix will be able to prevent advertisements for their products from appearing on content that they deem inappropriate. Furthermore, beginning in 2023, Nielsen will measure audience reach with Digital Ad Ratings to assist advertisers in understanding the analytics of their content.

COO Greg Peters also added that they want to offer consumers the choice to figure out what the best offering is for them. The new lower-cost tier is certainly welcome news for consumers who have seen the cost of, well, everything rise. Perhaps a lower price is what Netflix requires to remain relevant in the streaming world.

The ad tier will first be available in Canada and Mexico on November 1, 2022. This will be followed by the U.S., the U.K., Australia, Brazil, France, Germany, Italy, Japan, and Korea, on November 3, 2022. And Spain’s ad tier will launch on November 10, 2022.

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