Video distribution service Netflix is bringing forward the debut of a cheaper billing plan with ads to November, media reports. It seems that there is a speculation that they want to come up with a new rate plan ahead of the rival company’s service.
Starts before competitors launch similar plans
As of July, Netflix told investors it planned to launch its ad-supported pricing plan “around the first half of 2023,” but the latest reports suggest that the pricing plan will launch on November 1st. will reportedly launch in multiple countries, including the United States, Canada, the United Kingdom, France, and Germany.
The schedule change is said to be due to the December start of Disney+’s new rate plan “Basic”, which is a competing service. Netflix declined to comment, saying, “We are still in the early stages of deciding how to launch our low-cost ad-supported pricing plans and have not made any decisions.”
Advertising price is roughly $65 for reaching 1,000 viewers
The Wall Street Journal reports that Netflix’s new ad-supported pricing plan will cost roughly $65 for ads that reach 1,000 viewers. . Ad buyers say the price is significantly higher than many streaming platforms.
While introducing ads in the ad-supported plan, Netflix is said to be careful not to impair the viewing experience, and any brand can use up to $ 20 million (about 2.8 billion yen) annually. By setting an upper limit, it is said that consideration is given so that users do not see the same advertisement frequently.
Source: WSJ, Variety via 9to5Mac
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