Netflix plans to launch its cheaper plan on November 1 in the US, UK, France, Germany and Canada. Sources reported that to the American magazine Variety. Advertising parties would have already been informed by Netflix about the plans.
A November launch would be much earlier than expected. In July, the company said the new subscription would not be introduced until early 2023. However, Disney+ will launch its new ad subscription in the US on December 8, which will cost $8 a month, after which the normal, ad-free subscription will become more expensive.
The new Netflix subscription would cost between $7 and $9 per month in the US, making it $1 to $3 cheaper than the basic plan. The European prices are not yet clear. The cheapest Netflix subscription in our country currently costs 8 euros per month, whereby subscribers do not receive HD image quality and are only allowed to watch one stream at a time. The Standard subscription costs 12 euros per month and Premium costs 16 euros per month.
Battle for subscribers
With the cheaper ad plans, Netflix and Disney hope to both retain existing subscribers and attract new customers who find the streaming services too expensive. For years, Netflix said it didn’t support this model, but that attitude changed after the streaming service lost hundreds of thousands of subscribers this year.
4 minutes of commercials per hour
Both Netflix and Disney would like to show about 4 minutes of commercials per hour with the new subscriptions. Netflix would not want to show commercial breaks at the end of an episode or a movie and would like to keep some new series ad-free in the weeks after release. The company also wants to prevent people from seeing the same ads again and again and programs aimed at children will not contain ads.
There are several restrictions with the cheaper Netflix subscription. For example, there is no possibility to watch movies and series offline by downloading them to the device. The cheap subscription will also have a smaller content offer, Netflix acknowledged. That’s because the company has to pay more to some movie studios and producers to offer their movies and series in this new model.
Several competitors of Netflix and Disney have had cheaper advertising subscriptions for some time. In the Netherlands, RTL’s streaming service Videoland has also been offering this since 2020. In the US, Hulu and HBO Max, among others, already have similar options.
Viaplay, which offers Formula 1 and the Premier League in the Netherlands, says it has no plans for a cheaper subscription with advertisements.
Source: RTL Nieuws by www.rtlnieuws.nl.
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