Netflix will launch its formula with advertising in November

Netflix will launch its formula with advertising in November

DAY

Netflix will launch its new subscription with advertising in twelve countries in November, in an effort to revive subscriber growth, after losing hundreds of thousands worldwide during the first two quarters of the year.  

The cheapest subscription will cost $6.99 per month in the United States (5.99 euros in France for the “Essentiel” rate with ads) and will feature 15-30 second ads, broadcast at the beginning and in the middle of the programs.

The basic offers without ads remain at their current price (9.99 dollars in the United States and 8.99 euros in France).

“We strongly believe that “A lower price to consumers, along with strong ad monetization, is going to allow us to grow our subscriber base and over time generate significant incremental revenue,” COO Greg Peters said during the a press conference.

The giant is thus cutting the rug out from under Disney+, which will launch its own offer with advertising in December, for $7.99 per month. The basic subscription goes to $10.99.

In the first quarter of 2022, Netflix had lost 200,000 subscribers worldwide compared to the end of 2021. The news had caused its stock price to plunge by 25%. Then, from March to June, 970,000 subscribers left the platform.

The pioneer of the sector announced in April its intention to offer a cheaper subscription plan, but with advertising, after years of refusing this less prestigious solution.

It has teamed up with Microsoft to implement this new system. In concrete terms, users who have chosen these new offers will see an average of 4 to 5 minutes of advertising per hour. 

Children's programs will initially not be affected and for certain recent films, the ads will be longer , but broadcast only at the very beginning.

In terms of targeting, advertisers will be able to choose the countries and the genre (comedy, action, documentary…) and exclude certain characteristics (violence, nudity… ) according to the predominant model in traditional television.

Netflix will collect information such as the gender and age of its users and does not rule out doing so-called behavioral advertising targeting later, that is- i.e. personalized according to the preferences of individuals, such as on the internet.