Netflix had launched Basic with Ads

[rodeoneerer]

In 2019, Netflix said in a letter to shareholders “we… are advertising free,” and added that being commercial-free is a “deep part of our brand proposition.”

That all changed when the streaming leader launched “Basic with Ads,” the platform’s much anticipated ad-supported subscription plan.

Antenna’s data suggests a modest start. Antenna finds that 9% of Netflix Sign-ups in the U.S. in November were to the “Basic with Ads” plan, making it the least popular of their plan options.

How is Basic with Ads different from other Netflix plans?
Besides featuring ads (more on that in a moment), the tier will limit you to streaming content at 720p. Additionally, you won’t be able to watch every title in Netflix’s library, and you won’t be able to download shows and films for offline viewing.

How much does the plan cost?
In the US, Basic with Ads is priced at $7 per month.

The company has said that “current plans and members will not be impacted” and that “‘Basic with Ads’ complements our existing ad-free Basic, Standard and Premium plans.”

The new tier will have most of what’s available with Netflix’s current $9.99 a month Basic plan. However, the “Basic with Ads” option will include an average of four to five minutes of commercials per hour. Those ads will be 15 or 30 seconds in length and will play before and during TV series and movies.

Consumers have demonstrated that, with the right pricing and packaging, they will opt-in to ad-supported video services. In fact, Services that launched from day one with an ad-supported tier (or, in Hulu’s case, launched ad-free, but introduced an ad-supported option many years ago) have much higher share of Subscribers selecting the ad-supported option.

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