😍 2022-08-27 03:43:00 – Paris/France.
Netflix plans to price its new ad-supported version of the service between $7 and $9 a month, half the price of its most popular current plan, which costs $15,49 a month and contains no ads.
The objective is attract subscribers who are willing to see some ads in exchange for a lower monthly fee. As a "pioneer" of diffusion prepares to introduce advertising for the first time, it tries to strike the right balance between reaching a more cost-conscious consumer while provide a pleasant experience.
Netflix plans to sell around 4 minutes of commercials per hour for the ad-supported service, far less than most of its peers, according to people familiar with the company's plans.
The business will post ads before and during some programs, but not after. He also told advertisers he wanted to make smaller deals up front so as not to promise too much and overwhelm viewers with ads, said the sources, who declined to be identified because the talks are private.
When will the Netflix version with ads be released?
The new cheaper option is expected to be introduced during the last three months of the year in at least half a dozen markets. The company said launch in all countries may have to wait until early 2023.
Details of the service have started to leak as Netflix works out its plans and meets with business partners. A lot could change as the company expands its business.
Netflix has long been marketed as a user-friendly alternative to cable TV: people can watch commercial-free TV shows and movies; they can cancel (or register) at any time without much hassle and access a large catalog of programs. But subscriber losses in the first half of this year forced management to finally “open up” to ads.
The company hopes the cheaper price will attract new money-conscious customers and offer those willing to cancel a cheaper alternative. The new price could generate $8,5 billion a year worldwide for Netflix by 2027, including subscription fees and ad sales, according to media consultancy Ampere Analytics.
Many cable networks broadcast between 10 and 20 minutes of advertising per hour. Most of the services of Streaming offer less than cable. Some, like Hulu, frustrate viewers by showing always the same ad.
Netflix hopes to avoid these frequency complaints by starting slowly, as most people will see the same ads, although the company wants to make sure ads don't repeat over and over again.
Much of this work will be done by Microsoft, which has secured the right to be Netflix's exclusive ad technology and business partner. The tech giant has little experience in the Streaming TV, but has built a $10 billion ad business during the last years. Netflix is in talks with film and television producers, while Microsoft is talking to many advertising agencies and technology providers. The companies also jointly met with some advertising agencies.
SOURCE: Reviews News
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