Launched in 12 countries, including Brazil, the plan comes six months after the company announced the idea of having a more economical option for subscribers
Netflix announced its first plan with ads, which will be released in November, this Thursday (13).
The ad plan comes six months after the company communicated about the idea of having a more cost-effective plan for subscribers that would be financed by ads. To make this possible, Netflix has partnered with Microsoft.
The new plan will be available in 12 countries, Brazil, Germany, Australia, Canada, Korea, Spain, the United States, France, Italy, Japan, Mexico and the United Kingdom. In Brazil, it costs R$ 18.90 per month and will be released on November 3rd.
According to the company, the old plans will not be affected, since the “Basic with ad” will only complement the existing options, such as “Basic”, “Standard” and “Premium”.
During the press conference, Netflix announced that the average hourly ads will be 4 to 5 minutes, with each ad ranging from 15 to 30 seconds, displayed at the beginning and during content.
The new plan includes a good part of the streaming catalog, but there are still titles that will not be available due to licensing restrictions. According to Greg Peters, Director of Operations at Netflix, the company is working to reduce the number of titles that are not yet available, which, according to him, ranges from 5 to 10% of the catalogue, with this number varying from country to country.
Among the differences between the plans, the basic plan with advertisement includes: image quality increases from 480p to 720p, availability on several TV sets, cell phones and tablets; possibility to change or cancel the plan at any time. The main difference is that, with the ad plan, the user does not have the option to download titles.
In relation to advertisers, the company stated that the Basic plan allows companies to reach different audiences, such as young people who no longer have the habit of watching TV, for example.
According to Netflix, advertisers will have country and genre targeting features such as action, drama, romance, science fiction, making it possible to ensure that the ad is targeted to the company’s target audience.
In addition, advertisers will also be able to prevent ads from appearing in non-branded content, such as in titles that contain nudity, sex scenes or violence. Another point raised during the press conference and aimed at advertisers is the streaming partnership with verification companies DoubleVerify and Integral Ad Science, which will be responsible for verifying the visibility and validity of the traffic of ads from the first quarter of 2023.
“We’re confident that, with prices starting at R$18.90 a month, Netflix has a price and plan for all fans. This initiative is just getting started, but we’re delighted with the interest from both consumers and advertisers, and we’re very excited about what’s to come. As we improve and learn from this experience, our idea is to roll it out in more countries,” said Peters.