Netflix reveals ad-supported tier release date and price, lower than Disney

Netflix is ​​lowering the price of Disney+ by $1 per month as it prepares for a groundbreaking expansion with ad-supported streaming. The company says a new subscription tier, Basic with Ads, is $6.99 per month and will launch in the US on November 3, a month before Disney launches an ad-supported version of Disney+ on December 8. Canada and Mexico will receive the new plans on November 1st, two days later in the US, Australia, Brazil, France, Germany, Italy, Japan, South Korea and the UK, and Spain on November 10th. In the US, the entry-level price is less than half the cost of the most popular tier, Standard ($15.49 per month). Disney announced a price increase and a new ad-supported version of Disney+. When the new tier launches on December 8th, it will cost you $7.99 a month, which is the current standalone price of Disney+ with no ads. After December 8th, ad-free Disney+ will be $10.99, but many consumers opt for the Disney+, Hulu, and ESPN+ bundles, offering discounts on their regular prices. In a blog post, Netflix COO Greg Peters said there will be 4-5 minutes of ads per hour, and both series and feature films will be stopped due to the spot. (See how it looks in the video below.) Netflix’s global head of advertising, Jeremi Gorman, says the inventory, which includes hundreds of advertisers, is nearly sold out. In a Zoom call with journalists, she was asked how much advertisers were paying, but did not provide specific details. Regarding categories, the political sector will be a notable no-fly zone given how meaningfully it has surged in linear TV during the recent election cycle. Along with other items such as firearms, smoking, or plugs for products and services that Netflix considers illegal. In a Zoom call to expand its mid-movie advertising plan, Peters made it clear that there will be “pre-rolls” before new movies coming to the service, especially original ones like Knives Out 2, play uninterrupted. . “We’re going to try to preserve that kind of cinematic model there,” he said. It matches the way most rivals handle it. In contrast, Peters said that films that “served for a while” will have a more “traditional” mix of pre-roll and mid-roll commercials, although with “less frequent” breaks. The extent to which the company has overturned its longstanding stance on advertising cannot be overstated. Co-founder and co-CEO Reed Hastings and other executives denied for years that Netflix would not be working with Madison Avenue, and Hastings has been accused of privacy and other complex issues that have hampered Facebook and other digital giants. He said he didn’t want to be tied down. “We want a safe haven where we can explore, stimulate, have fun, and enjoy,” Hastings said in his 2020 earnings call. But that was during the relatively halcyon era. In 2020, with the world shutting down due to COVID-19, Netflix Subscriptions surged dramatically, adding 26 million paying customers in the first half of the year alone, which is the total for 2019. New headwinds this year combined with inflation, worsening consumer economy and fierce competition for streaming subscriptions, which Netflix once ran virtually. When Netflix posted disappointing subscriber counts for two straight quarters (even losing its total subscriber count for the first time in a decade), the mistake caused a sharp drop in Netflix stock price and sparked a number of changes for the company. In addition to cutting costs and streamlining employees, the company decided to change its stance on advertising, sensing the potential to add billions of dollars in revenue.A partnership with Microsoft was announced, and Peter, former head of advertising sales at Hulu Two prominent Snap executives, including Naylor, have been recruited to lead Netflix’s foray into the brand. Not all programming advertises at launch. The blog post goes from Basic with Ads “due to licensing restrictions” to “limited number of movies and TV shows are not available.” At a press conference, Peters said missing titles account for about 5-10% of the total pie. “Everything is based on deals, not specific studios,” he said. “And again, we’ll try to reduce that number over time.” Most of our previous agreements with content providers were forged “in a previous period that didn’t take into account the ad-based tier,” says Peters. As mentioned above, Hastings declined to comment on its advertising plans in its quarterly earnings release, and the company’s go-to-market plans It’s only been six months since the stroke was finalized and shocked Wall Street and the media business. The blog post also noted that Netflix is ​​working with DoubleVerify and Integral Ad Science to “verify the viewability and traffic validity of our ads” starting Q1 2023. Also next year, Nielsen will use digital advertising ratings in the US. It allows measurement companies to provide a sense of how viewership is progressing, and consequently reports numbers through its long-standing Nielsen ONE product. Downloads are not allowed in Basic with Ads and the resolution is 720p, which is not as sharp as 1080p on the most popular Netflix Standard plan. Take a look at the advertising experience on Netflix. In this example, the company provided an idea of ​​what the seat would look like before the episode Emily in Paris began.
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