Netflix has finally unveiled its ad-support subscription, designed for customers reluctant to pay for its regular (and expensive) plans. The new plan costs roughly Rs 600 ($6.99) per month, which is close to Netflix’s premium plan at Rs 649 in India. However, the ad-supported plan, called ‘Basic with Ads’, will launch in the US on November 3. It will be available in Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK later.
Netflix’s Basic with Ads plan was first announced nearly six months ago after the company continued to see a fall in its subscriber base. This tier is co-created by Microsoft. In terms of benefits, Netflix explains that the Basic with Ads plan sits with the existing ad-free Basic, Standard and Premium subscriptions. Its features include:
-Video streaming in HD (720p) resolution.
-One streaming device supported (mobile, tablet, PC or TV).
-Average of 4 to 5 minutes of ads per hour.
-No ability to download titles.
-Limited catalogue but with access to Netflix originals.
Speaking more about the kind of ads users will see, the company notes that ads will be 15 or 30 seconds in length, and will play before and during shows and films. This model will be followed at launch and may be revised later.
Netflix will also partner with agencies to show the most relevant ads to customers. For instance, the company will partner with Nielsen and use its Digital Ad Ratings (DAR) in the US. In a blog post, it says, “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community â€” and couldn’t be more excited about what’s ahead. As we learn from and improve the experience, we expect to launch in more countries over time”.
In the US, Netflix plans are quite expensive, especially if we look at the exchange rates. The basic ad-free plan costs 9.99 (roughly Rs 800) per month. The standard and premium plans cost (monthly) $15.49 (roughly Rs 1,300) and $19.99 (1,600), respectively. Therefore, it makes sense for Netflix to launch an ad-supported plan for now. The company dropped the price of its plans in December 2021. It currently costs Rs 149 for the mobile plan. The basic, standard, and premium plans cost Rs 199, Rs 499, and Rs 649.