Image Source: GSM Arena
According to a Bloomberg article released over the weekend, the forthcoming Netflix ad-supported plan may cost between $7 and $9 per month. To put things into perspective, the streaming service offers a basic single-screen plan in the U.S. for $9.99 a month, while its most popular plan, which offers full HD streaming on two screens, costs $15.99 per month.
According to the Bloomberg article, Netflix will air four minutes of advertisements for every hour of content, which is comparable to or less than what its rivals do. It also stated that the corporation might run advertisements before and during a program but not following an episode.
The huge streaming service announced its intention to continue offering its ad-supported plan in April. Since then, however, numerous reports have noted that the company may implement this plan by the end of the year. According to the latest report, Netflix may roll out its ad-supported tier in at least six markets during the year’s final quarter.
During its most recent earnings call, Netflix acknowledged that subscribers to the ad-supported plan wouldn’t initially have access to its entire catalog; this may be because of its licensing agreements with various studios. According to recent sources, Netflix may soon include the ability to access content offline. The streaming service revealed last month that it would work with Microsoft to sell advertisements for the future scheme.
Additionally, even on the ad-supported plan, according to a Bloomberg article published last week, Netflix may not broadcast advertisements on kid-friendly programming. According to the article, the corporation might initially choose not to run advertisements during its original movie programming.
The major streaming service has experimented with more affordable options, such as mobile-only plans offered in India, Malaysia, Nigeria, Kenya, and South Africa, in an effort to attract more subscribers. However, following the introduction, the ad-supported plan might be accessible everywhere. By 2027, it is predicted that Netflix commercials will bring in $8.5 billion in revenue.
According to a report by Digital TV Research, the global ad-supported video on demand (AVOD) industry will reach $70 billion by 2027, with the United States accounting for $31 billion of that total.
It’s not just Netflix that wants to grow its user base by relying on an ad-supported model. Disney+ announced in March that it would be launching a comparable tier by the end of the year. The business announced earlier this month that its December launch would cost $7.99 per month. Warner Bros. Discovery also mentioned during its earnings call for Q2 2022 that it is investigating an ad-fueled plan for the new service, which is scheduled to debut in 2023 and is the result of the merger of HBO Max and Discovery+.
Studio Film Team at Netflix is Undergoing a Restructure
The anticipated departure of Tendo Nagenda, one of the streamer’s senior film executives, is a new development in Netflix’s restructuring.
The seasoned executive oversaw such films as “The Harder They Fall,” “Da 5 Bloods,” and the upcoming “Glass Onion: A Knives Out Mystery” for the streamer. He came to Netflix from Disney in 2018. According to Variety, Nagenda will leave his position as the original movie’s vice president on September 1.
Nagenda worked at Good Universe, Warner Independent Pictures, and Plan B Entertainment before rising through the executive levels at Disney, where he managed such movies as “Cinderella,” “Beauty and the Beast,” “Mulan,” “Queen of Katwe,” and “A Wrinkle in Time” during his stay.
Read Also: Squid Game 2 won’t be available on Netflix in September
Stuber hired him to join Netflix in 2018, where he would help the streaming service shift from a mostly licensed/third-party managed business toward generating and producing original films while also dominating the awards season. Nagenda was given a producing post with the streamer, but he declined in order to pursue other endeavors.