This November, Netflix launched a new plan that will allow advertisers to place ads within their content. The company has been experiencing lower subscriber numbers and increasing competition from other streaming services.
The Basic with Ads plan costs $ 6.99 per month and includes ads before and during shows/movies that are 15-30 seconds long (on average). Additionally, it will have a smaller content selection due to licensing restrictions.
Furthermore, the new plan does not allow users to download content for offline use.
In a surprising turn of events, the company experienced its first decline in subscribers in over a decade. This led to more than 150 employees being fired and contractors/part-time workers being let go during May’s layoffs.
Netflix is facing an uphill battle with Disney+. The company’s woes are evident in the numbers, as they have lost millions of their United States subscribers over just three years.
However, its streaming competitor has been gaining popularity and now boasts 14 million users – about five times higher than Netflix.
Netflix has always been a company that prides themselves on not having advertisements, and this was the original deep part of the brand proposition.
“We believe we will have a more valuable business in the long term by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction,” the letter said.
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Basic with Ads
Netflix is considering launching a lower-priced, ads-free streaming service to compete with companies like Hulu and Amazon Prime Video.
“Those who have followed Netflix know that I have been against the complexity of advertising and a big dan of the simplicity of subscription,” Hastings stated during the first-quarter-earnings call in April.
“But as much as I am a fan of that, I am a bigger fan of consumer choice – and allowing consumers who would like to have a lower price and are advertising tolerant to get what they want makes a lot of sense.”
The Basic with Ads plan is perfect for viewers who want to watch high-definition video quality of up to 720p at one time on supported devices. There are no advertisements in Netflix games. So, it’s the best option if you’re looking forward to playing some of these interactive adventures.
Netflix is upgrading its Basic plan to provide customers with higher-quality video. The new $9.99 monthly fee provides access from 480p up to 1080p. In addition, it means that you’ll be able to watch movies with crystal clear definitions.
As of November 3rd, the Basic with Ads plan will be accessible in 12 countries and released across America.
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