One of the distinguishing features of Netflix has always been that the service has been entirely free of advertising. One of the main conditions at Netflix is that you would not be shown commercials when watching. That’s about to change.
On Thursday, the company announced the launch of its new “Basic with Ads” plan. It’s the first plan with ads in Netflix’s history. It will be available on Nov. 3 in the U.S., Canada, Australia, Brazil, France, Italy, Germany, Japan, Korea, Mexico, Spain, and the U.K. The plan will cost a little less – $6.99 a month.
In the statement, Netflix says that all the existing plans will remain unchanged. Just the current projects will be added. Many users did not like this innovation, but advertising companies, on the contrary, saw this as an opportunity for additional advertising.
This plan will include what users get with the Netflix Basic Plan. However, the difference will be that for every hour of content viewing. Users will be forced to view between 4 and 5 minutes of commercial inserts.
The commercials will last from 15 to 30 seconds at the beginning and in the middle of the show or movie. Also, Netflix noted that they plan to provide ample opportunity for targeting by region and genre. This way, “advertisers will reach the right audience – and ensure that our ads are more relevant to consumers“.
Also, Netflix said in a statement, “Advertisers will also be able to prevent their ads from appearing in content that might not be relevant to their brand (such as sex, nudity or graphic violence),” Netflix said.
The company said it will partner with Nielsen, which tracks ratings in the U.S. in 2023, “so advertisers can understand how Netflix can reach their target audience.“
“While it’s still very early, we’re pleased with the interest from consumers and the advertising community, and we couldn’t be more excited about what lies ahead,” Netflix said. “As we learn and improve our experience, we expect to launch the service in more countries over time.“
This all comes against the backdrop of Netflix’s announcement in April that it had started losing subscribers for the first time since its inception, leading to a collapse in the company’s price. So this move seems like a logical way to raise more money.
The good news for users is that the basic plans will remain the same, and no one will make you watch ads where there were none before, so you don’t have to worry about it.
