KUCHING: Netflix on October 13 said that a subscription option subsidised by ads will debut in November across a dozen countries as the streaming service strives to jumpstart stalled growth.
According to AFP, the new “Basic with Ads” subscriptions will be priced at US$6.99 in the United States, which is three dollars less than the no-ads basic option.
Its chief operating officer Greg Peters said the timing is great because they are at the pivotal moment in the entertainment industry and evolution of that industry.
Now, streaming has surpassed both broadcast and cable for total TV time in the United States,” he said.
The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the United States.
Video ads will be from 15 seconds to 30 seconds long.
Greg then said that they are looking at a very light ad load with no more than four to five minutes of ads per hour.
“This includes some very tight frequency caps so that members don’t see the same ad repeatedly,” he added.
With the launch of cheaper, ad-supported subscriptions, Netflix and other streaming services, Disney+ are expected to bite into the revenue of traditional television channel.
