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New Netflix subscription with ads starting at $5.99 per month
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Ads on Netflix ? Everything you need to know

That’s it, there are ads on Netflix! We’ve been hearing this rumor for several months now and it’s now official. A new Netflix subscription is available since the beginning of the month. Its particularity: ads will appear during the viewing. But why propose such an offer? Netflix is losing more and more subscribers and has preferred to offer a cheaper subscription with advertising to be able to meet all needs. Here’s everything you need to know about this new Netflix subscription, both from the consumer and the business side.

What are the changes in this new Netflix subscription for the consumer?

This new Netflix subscription is in addition to the three existing ones and costs $5.99, which is $4 cheaper than the basic subscription. But with such a low price, there are obviously constraints. First, you no longer have access to the entire catalog because of rights issues on certain programs. But this does not affect the original Netflix programs. Secondly, this subscription allows the connection of only one user at a time, like the basic offer. Third, with this new Netflix subscription, it is not possible to download a program to watch it later without internet. Fourthly, the video quality is in HD (720p), which is not as good as the standard offer (1080p). But the biggest change is the introduction of ads on Netflix.

Price of the new Netflix subscription with ads according to different countries

Unlike Prime Video, the ads on Netflix are at the beginning of each episode or movie but also during the whole viewing. Moreover, you can expect about 5 minutes of ads per hour without the possibility of skipping them. But don’t panic, some people have studied the programs so that the commercials don’t interrupt an important moment in the show. Also, the ads on Netflix will not be systematically the same so that the process is not too annoying. Some consumers are not thrilled with this new Netflix subscription because they feel that if they buy a subscription, it’s not to experience ads like on TV. But even with ads on Netflix, this is an interesting alternative for people who do not necessarily have the means. With this new Netflix subscription, the company is far ahead of its competitors and especially Disney+ which has a subscription at $8.99.

Now, the question is: what is the type of ads on Netflix and what what will it bring to companies?

What are the benefits of ads on Netflix for businesses?

Ads on Netflix are only video advertising, not display ads, banners on the interface or anything else. Also, with this new subscription, don’t expect the ads on Netflix to be the same as on TV. Logically, you should be able to avoid ads for yogurt. Of course, this is also valid depending on the program. For example, if you’re watching “Emily in Paris”, chances are you’ll see ads for luxury goods or cosmetics.

Preview of an ad on Netflix targeting people watching the show "Emily in Paris"

On the business side, ads on Netflix are very interesting because it allows stronger marketing targeting. This new Netflix subscription gives brands access to people who are out of reach because they don’t watch traditional channels as much anymore. Viewers are targeted according to their tastes (based on the genre of the series or movies they watch) and are captivated by what they see because the ads are in the middle of the content. Moreover, the ads on Netflix give access to dozens of countries at the same time. So, the company buys an advertising space that will be broadcast around the world!

Finally, this new Netflix subscription represent a big opportunity for businesses as well because Netflix has over 220 million paying subscribers. It is the largest video streaming service in the world. Plus, ads on Netflix would reach about 40 million viewers worldwide by the third quarter of 2023. So, it is nothing but positive for the brands.

Netflix ad tier revenue forecast following the announcement of the new Netflix subscription

It remains to know how many people will adopt this new Netflix subscription. The answer will be at the beginning of 2023 for the first results.

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