Netflix has announced that in an effort to attract new users, it will debut a streaming plan with advertising for around $7 per month in the month of November.
Netflix’s “Basic with Ads” package, at $6.99 per month, offers a $3 savings compared to the service’s $11.99 least expensive tier without ads.
The United States, Brazil, Germany, Japan, and Korea are among the 12 nations where the new feature will debut.
On Nov. 1, the Netflix ad-supported plan will launch in Canada and Mexico, and on Nov. 3, it will do the same in the United States, Brazil, the United Kingdom, France, Italy, Germany, Australia, Korea, and Japan.
On November 10, Spain will be the next country to join.
Four to five minutes of advertisements will be shown to plan subscribers per hour, according to Netflix.
For the sake of the movie experience, newly released movies will have minimal advertising.
Approximately five to ten percent of Netflix’s content will be unavailable on the ad-supported alternative due to licensing restrictions, Netflix COO Greg Peters said.
“We at Netflix have a fantastic potential to expand our business and draw in additional members. And having a variety of pricing options is part of it “Peters remarked.
Other streaming services, like HBO Max from Warner Bros. Discovery and Hulu and Disney+ from Walt Disney, currently provide or intend to provide cheaper ad-supported choices. For plans with ads, those services price between $8 and $10 per month.
According to Netflix’s president of global advertising, Jeremi Gorman, the company virtually sold out its ad inventory for the introduction of the new tier due to interest from industries as diverse as the automotive, consumer packaged goods, and luxury goods sectors.
For a long time, Netflix officials flat-out refused to consider including advertisements in their service.
Following the announcement, Netflix’s stock price increased by 5.4% to $232.86.
Read more on Tech Gist Africa:
As YouTube tries to catch up to TikTok, it will start giving Shorts creators a share of the money it makes from ads
Netflix has announced that Microsoft will be a partner in its ad-supported subscription service
Twitter has agreed to pay $150 million in fines after being accused of violating users’ privacy for advertising purposes