This is how much discounted Netflix can cost

Bloomberg sources according to Netflix can price its soon-to-be-introduced, ad-supported packages between $7-9, which can be a significantly cheaper alternative for existing subscribers compared to the current monthly fees, since currently you can choose from $10, $16, and $20 packages (in Hungary, $2,490, $3,490 and means HUF 4,490). That’s about the same as Hulu’s $7 ad plan, and slightly cheaper than HBO Max’s $10.

Of course, some compromises must be expected: not only do you have to put up with the advertisements, but the range of available content will not be complete at first, and in the source code of the mobile app, those with an eye have already discovered indications that the offline viewing function should also be omitted. According to the report, the company’s stated goal is to sell four minutes of ads per hour, which it would display before and in the middle of the content it wants to play (the same four minutes that HBO Max displays per hour).

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It agrees with previous reports that there will be certain content and types of content for which ads will not appear. This type of content will primarily be the all-night movies, which are considered big draws, at least in the unspecified period following their premiere, the newspaper claims. The primary reason for this is that Netflix believes that the most famous filmmakers would turn away from the platform if their shows were interspersed with commercial breaks from the beginning. Advertising will also be taboo in the case of content specifically intended for children (films, series) and, depending on the individual license agreements, in the case of all other content where an agreement was originally concluded with the licensee that prohibits the inclusion of advertisements in the program.

Based on the information so far, Netflix may make the cheaper packages available in “half a dozen” markets in the last quarter of this year, the wider introduction may take place at the beginning of 2023. According to a Netflix spokesperson, the Bloomberg report is only speculation, and the company is still working on the details of introducing the lower price tier. The details of the advertising model are still quite malleable, and it could easily happen that Netflix ends up pulling out of the new, advertising-supported subscriptions – Bloomberg has previously pointed out.

After the company announced at the beginning of the year that it had lost net subscribers for the first time in a decade, co-CEO Reed Hastings made several announcements about the streaming service’s future plans, and since then the company has reported another disappointing quarterly result. In January, Netflix raised prices on all of its plans in the United States (its third hike in as many years), and is testing ways to convert password-sharing viewers into subscribers. Meanwhile, the company also faces the rise of other streaming services, including Disney+ and HBO Max.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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