Netflix announces that it is going to launch its ad-supported plan in the US starting in November. It will be $6.99 per month with various other features being different from the premium plans. According to the announcement, the company is set to launch the same in nine countries.
The price of the ad-supported plan is less than the current minimum premium plan of $13 per month. The new plan would mean that the cheapest plan would be around $7 per month. Additionally, the company’s measurement partner will be Nielson. Despite the criticism Nielsen is known for its inaccurate streaming data, the collaboration is expected to work out.
The launch in the US is expected to start on November 3. In Canada and Mexico, it is the 1st of November. Making Canada and Mexico Netflix subscribers the first one to try out the new Netflix plan. Then the rollout will happen in the UK, the US, Italy, France, Germany, Japan, Australia, Brazil, and Korea by November 3. In Spain, the launch is on November 10. The launch dates confirm reports that the ad tier would roll out in 2022, contrary to Netflix’s previous announcement that it would launch in early 2023.
Competing Disney
The streaming giant will beat rival Disney+ at a slightly cheaper tier. Every dollar counts, however, Netflix’s ad-free plans will remain the same price. In the announcement, Netflix wrote, “While it’s still very early days, we’re pleased with the interest from both consumers and the advertising community 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.”
While the option seems attractive, there are some downsides. Subscribers can enjoy various Netflix titles at a lower price while also streaming on multiple simultaneous devices, the company has still not worked out the rights to various shows and movies. The company added, “A limited number of movies and TV shows won’t be available due to licensing restrictions, which we’re working on.” During the press call today, Greg Peters, chief operating officer, of Netflix, said that the percentage of unavailable titles varies from country to country. At launch, approximately 5% to 10% of Netflix’s catalog will be missing from the ad-supported plan. “We’ll work to reduce that number over time,” Peters said. Also, the company stated that offline viewing would be unavailable as the ads won’t be available in the offline videos. The resolution is 720p HD video, much lower than the standard and premium plans at 1080p HD video.
