Netflix has been making headlines for its cheaper, ad-supported plan, which it announced to gain more subscribers and the declining revenue. While it is slated to launch in early 2023, a new report suggests otherwise and we may officially see it in November this year.
Netflix’s Ad Plan May Arrive Earlier than Expected!
A recent report by The Wall Street Journal reveals that Netflix will launch the ad-supported plan on November 1, as per a word by some advertisers. It is said that the decision to move up the plan’s launch could be to compete with rival Disney+, which is expected to introduce its ad plan in December.
The ad-supported plan by Netflix is expected to launch in the U.S., Canada, U.K., France, and Germany, followed by other regions.
Netflix has decided to stay mum on the matter as of now and states, “We are still in the early days of deciding how to launch a lower-priced, ad-supported tier and no decisions have been made.“
Besides this, we have some details on Netflix’s ad model. It is reported that Netflix may charge advertisers $65 CPM (cost per mille or cost per thousand), which is pretty high compared to the standard $20 CPM. The OTT platform is said to seek an annual spend of about $20 million and charge about $80 CPM eventually.
Negotiations are expected and it remains to be seen what Netflix and the advertisers settle for. It is speculated that Netflix aims to show 4 minutes of adverts an hour, which is relatively shorter. It has also appointed former Snap Inc employees Jeremi Gorman and Peter Naylor to head its advertising business.
The new ad-supported plan is said to cost between $7 and $9, although, this could be cheaper in India. Previous rumors have suggested that the plan won’t include all of Netflix’s content and may also refrain from showing ads in some content. There may not be an option to download the movies and TV shows for offline viewing and the plan may support a 480p resolution.
Concrete details are still awaited and if Netflix is planning a launch in two months, we expect it to reveal some pretty soon. We will let you know when we hear something about this. So, stay tuned, and do let us know if you are willing to get the cheaper, ad-clad plan by Netflix in the comments below.