Netflix relies on a cheaper advertising subscription to counteract customer dwindling. According to one report, it should cost 7 to 9 dollars. 4 minutes of advertising per hour are planned.
The TV streaming service Netflix is planning a price of between 7 and 9 US dollars for its cheaper subscription, which is said to include commercial breaks. The duration of the commercials should add up to a total of 4 minutes per hour, advertising should be shown before the start of a program and in the middle. This is reported by Bloomberg, citing anonymous informants who are said to be familiar with the company’s plans.
Four minutes of advertising per hour
Netflix is fighting against falling subscription numbers in the face of ever-increasing competition and would like to use this additional offer to attract new customers who are willing to watch commercials for lower costs. This plan had recently become known in a notification to shareholders. It would be the first time Netflix has disrupted its offerings by advertising from outside advertisers. At a range of $7 to $9, the new subscription would be a good half the price of the “Standard” HD subscription, which currently costs $15.49 in the US. A “Basic” subscription already exists for $9.99, but it is limited to SD resolution.
Commercials should not last longer than 4 minutes per hour and should not be repeated. According to the Bloomberg report, the advertising will only be available before and during certain programs. Viewers should not be overwhelmed by the advertisement. The company is currently informing potential advertisers that there will be smaller deals in advance so that you don’t promise too much.
Advertising subscription start in the coming year
According to the report, the new subscription is to be offered for the first time in six countries at the end of the year – probably as a test phase, because planning and discussions with business partners are still in the middle. The launch in all countries where Netflix operates will therefore not take place until next year.
With its strategy, Netflix apparently wants to avoid upsetting its (new) customers right away, because traditional cable television shows advertising for much longer and customers of other streaming providers often react annoyed to constantly repeating commercials. Netflix has won Microsoft as a partner in the implementation of the advertisements, and the company should take care of the technology behind it and the sale of advertising space.
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