As we discussed in a previous blog, “it’s (possibly) happening: ads are coming to Netflix”, the platform has plans to launch an ad-supported tier. However, this tier may come even sooner than we thought - as early as November 2022. Now that it’s crunch time, consumers have more questions than ever about what the newest Netflix tier will entail. So, what do we know now that we didn’t know several months ago? Let’s look into a couple questions that users may have, and the answers we kind of know. 

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How Much Will It Cost?

Pricing is always the main concern. Reports say that this new tier will cost around $7-$9, which is either roughly half the cost of the standard subscription at $15.49 per month, or about half the cost of the premium subscription at $19.99 per month. While this may be a tempting option in terms of savings, its competition is stiff. For example, many consumers pay $12 per month for a Disney+, Hulu and ESPN+ bundle…a deal that's tough to beat. Peacock also offers cost-effective options for consumers, offering a free subscription plan, an ad-based plan for $4.99 a month, and a premium subscription that’s a reasonable $9.99 a month. Clearly subscription plans like these are persuasive, but consumers are bound to want movies and shows exclusively offered by Netflix. For those that are loyal to Netflix, let’s find out what else there is to anticipate.

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How Often Will Users See Ads?

Since Netflix is an advertising newcomer, it has the advantage of shaping their ad formats based on what other platforms have done. According to a report from Bloomberg, Netflix plans to show 4 minutes of ads for every 1 hour of content. Seeing ads will also depend on what users are watching. The current plan is to have ads play during original TV shows and third-party programs rather than children’s shows and Netflix Original movies. To make the ads less monotonous for viewers, Netflix also plans to minimize repetitive ads by putting a cap on ad frequency. This prevents users from seeing the same ads multiple times in one viewing session.

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Ads Help Netflix, Consumers, & Your Business

Advertisements are undeniably a great method of gaining more subscribers, as well as giving current users the opportunity to shift over to a money-saving option. It’s a win-win for Netflix and consumers alike, as well as businesses who’d like to take up the opportunity and advertise on Netflix. Sound like something you’re interested in? Then the Giovatto Agency can help! We’ll offer a cost-effective strategy and get the word out about your business on all of the most popular streaming platforms out there. Contact us today for your free consultation!

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