Unless you’ve spent the last few months locked away in a cave, you probably already know that Netflix is planning the launch of a new affordable subscription that will be partly ad-supported. For a long time, SVOD was opposed to this idea. But today, this one has growth problems.
Its number of users is going down instead of up. And the competition has become tougher, with the arrival of new players like Disney+ or HBO Max. Also, in April, Netflix started hinting that a new low-cost offering is in the works.
This was later confirmed. And Netflix has already signed a partnership with Microsoft, which will manage the platform’s advertising placements.
Netflix would launch the low cost subscription on the 1er november
Netflix has not yet indicated a launch date. However, this new subscription was expected to land in 2023.
But apparently the company has moved its schedule forward. And now, it is expected that the new offer with advertising will be presented this last quarter of 2022.
This is in any case what is indicated by an article recently published by the site Variety. According to this, Netflix is now planning to launch the partially ad-supported subscription on 1er november. Indeed, the SVOD would intend to get ahead of Disney +, whose subscription with advertisements will be launched on December 8.
This launch of the 1er November would affect several countries, including the United States, Canada, the United Kingdom, France and Germany. Netflix has yet to discuss pricing, but rumors say the subscription could cost between $7 and $9 in the United States. And the European tariff could be more or less the same.
“We are still in the early days of deciding to launch a low-cost, ad-supported tier and no decision has been made”has, meanwhile, indicated a representative of the company, quoted by Variety.
Netflix would have planned not to invade us with advertisements
While waiting for the arrival of this low cost offer from Netflix, there are many rumors. For example, unofficial information is already circulating about the limits that Netflix would have set for the distribution of advertisements.
In a previous article, we relayed sources indicating that SVOD would not exceed 4 minutes of advertising for one hour of broadcasting. This is corroborated by the Variety article, which also adds that for movies, ads would run pre-roll. That is, these would run before the content, but not during the movie.
Netflix would also have set limits in terms of frequency. On his low cost subscription, the user would only see one ad per hour. And this one would see no more than three ads a day. In essence, by industry standards, Netflix would have greatly restricted ads on its platform. In addition, the targeting of ads would be greatly restricted. Indeed, it would not be based on criteria such as age, gender or viewing habits.
It remains to be seen whether the launch of this new subscription will have a short-term impact on the growth of the platform. According to Variety, Netflix has told advertisers that by the end of the year, the new subscription could attract nearly 500,000 subscribers.
It should also be noted that according to the sources of this media, the auctions for advertisers would begin very soon.