LONDON: Netflix is reported to have anticipated the launch of its new ad-supported platform in November in a bid to beat Disney+ to it.
Netflix, which initially planned to launch the new platform in early 2023, told ad buyers the new launch date would be Nov. 1, which will see the streaming giant getting ahead of Disney+’s planned launch of an ad-supported tier in December.
Netflix, which teamed up with Microsoft to develop a cheaper subscription plan that includes advertisements, said its new offering would initially be available in the US, Canada, Australia and some countries in Europe for a price expected to be around $7 to $9 dollars per month.
Neither Netflix nor sources disclosed if the service is going to be available for customers in the Middle East.
“We are still in the early days of deciding how to launch a lower-priced, ad-supported tier, and no decisions have been made. So this is all just speculation at this point,” a company spokesperson said.
Sources reported that Netflix is seeking to sell advertisements at the cost of $65 per 1,000 views. The streaming giant is also requesting a minimum $10 million annual ad spend commitment from companies and put a spending cap at $20 million per brand per year to avoid subscribers seeing the same ad too frequently.
In an effort to preserve the integrity of the platform, the company is reportedly building a light ad load. Buyers claim that Netflix’s ad-supported tier will have an ad load of roughly four minutes per hour for TV series and pre-roll commercials for movies, up to a maximum of three ads per day, in line with Disney+’s original plans.
Earlier this summer, after years of amassing subscribers, Netflix lost 200,000 customers worldwide in the first quarter compared to the end of 2021, which sent its share plunging.
The streaming giant reacted by announcing the arrival of advertising on the service, with the aim to finance the investments necessary to maintain its position as leader in the industry that it launched.
Netflix indicated it would get tougher on sharing logins and passwords, which allow many people not to pay to access the platform’s content.
Last week the company also announced the hiring of two Snap Inc. executives, Jeremi Gorman and Peter Naylor, to lead its advertising business.
