According to a Bloomberg piece published over the weekend, new Netflix ad-supported plan may cost between $7 and $9 per month. For instance, the streaming service offers a fundamental single-screen plan in the U.S. for $9.99 per month, while its most well-liked plan, which provides full H.D. streaming on two screens, costs $15.99 per month.
The Bloomberg story claims that Netflix plans to run four minutes of advertisements for every hour of programming, which is on par with or less than that of its competitors. In addition, it was revealed that while the company might air advertising before and during a program, they won’t do so following an episode.
The streaming giant said in April that it would begin offering its ad-supported membership in 2019. However, subsequent reports have stated that the business may carry out this strategy before the end of the year. According to the most recent estimate, Netflix may launch its ad-supported tier in at least six markets during the fourth quarter of the year.
In its most recent earnings call, Netflix acknowledged that its ad-supported plan customers wouldn’t at first have access to the entire library; this may be because of licensing agreements it has with various studios. However, according to recent reports, a future Netflix plan may allow for offline viewing. Last month, the streaming service first made public its partnership with Microsoft to sell advertisements for the upcoming plan.
In addition, according to a Bloomberg article published last week, Netflix might not show advertisements for family-friendly content even on the ad-supported plan. The article claims that the corporation may initially decide against airing commercials during its original movie programming.
In a bid to entice additional users, the streaming giant has experimented with more cost-effective plans, such as mobile-only plans provided in India, Malaysia, Nigeria, Kenya, and South Africa.
The ad-supported plan might, however, be available worldwide after launch. For example, Netflix advertisements are expected to earn $8.5 billion by 2027. In addition, a study by Digital T.V. Research predicts that by 2027, the global ad-supported video on demand (AVOD) market will be worth $70 billion, with the U.S. accounting for $31 billion of that sum.
The ad-supported business models are being used by streaming services other than Netflix to increase their user bases.
By the end of the year, an equivalent tier would be introduced, Disney+ stated in a March announcement. The business stated earlier this month that the price for its December debut would be $7.99 per month. The new service, which is expected to launch in 2023 due to the merger of HBO Max and Discovery+, will be funded by advertisements, Warner Bros. Discovery also disclosed during its earnings call for Q2 2022.
Netflix Senior Executive Tendo Nagenda Quit
As part of Netflix’s current reorganization, Tendo Nagenda, one of the streamer’s senior film executives, is about to go.
The seasoned executive, who made a move from Disney to Netflix in 2018, handled movies for the streaming site, including “The Harder They Fall,” “Da 5 Bloods,” and the upcoming “Glass Onion:
A Knives Out Mystery.” According to Variety, Nagenda will leave his job as vice president of the first film on September 1.
Before advancing through the senior ranks at Disney, Nagenda held positions at Good Universe, Warner Independent Pictures, and Plan B Entertainment. There, he oversaw such films as “Cinderella,” “Beauty and the Beast,” “Mulan,” “Queen of Katwe,” and “A Wrinkle in Time.”
Stuber hired him in 2018 to work for Netflix. He would aid in the company’s transition from a primarily licensed/third-party managed approach to creating and producing original films while stomping the competition during awards season. Nagenda declined a producing job offer from Netflix in order to pursue other opportunities.